Journal article


Should Commuting Expenses Be Tax Deductible? A Welfare Analysis.


Publication Details
Author(s): Wrede M
Publisher: Elsevier
Publication year: 2001
Volume: 49
Pages range: 80-99
ISSN: 0094-1190
Language: English

Abstract

This paper asks whether or not commuting expenses should be tax deductible. In
order to answer this question, a simple multiregion model of Žim-.perfect household and
worker mobility is employed. The paper shows that deductibility is clearly inefficient
only if households are perfectly mobile and if households cannot choose their place of
work. If the region of work is not exogenously fixed, commuting expenses should be
deductible at more than 100%, even if households choose simultaneously the place of
work and the region of residence, and even if tax rates are not standardized within the
federation.



How to cite
APA: Wrede, M. (2001). Should Commuting Expenses Be Tax Deductible? A Welfare Analysis. Journal of Urban Economics, 49, 80-99. https://dx.doi.org/10.1006/juec.2000.2185

MLA: Wrede, Matthias. "Should Commuting Expenses Be Tax Deductible? A Welfare Analysis." Journal of Urban Economics 49 (2001): 80-99.

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