@article{Martinez2022,
  title = {Mobility Responses to the Establishment of a Residential Tax Haven: Evidence from {{Switzerland}}},
  author = {Mart{\'i}nez, Isabel Z.},
  year = {2022},
  month = may,
  journal = {Journal of Urban Economics},
  volume = {129},
  pages = {103441},
  doi = {10.1016/j.jue.2022.103441},
  url = {https://doi.org/10.1016/j.jue.2022.103441},
  abstract = {I analyze mobility responses to a tax reform that established the Swiss canton of Obwalden as a tax haven in 2006. The reform, which included a regressive income tax schedule, was explicitly aimed at attracting the top 1\%. Difference-in-Differences (DiD) estimations comparing Obwalden to all other cantons confirm that the reform successfully attracted high-income taxpayers: by 2016, the share of top earners in the canton had doubled, and average income per taxpayer was 16\% higher relative to 2005. Based on individual tax return data, I estimate the mobility elasticity with a two-stage least square (2SLS) approach, which isolates the identifying variation in the tax rate stemming from the 2006 reform only. I find a large elasticity of the stock of high-income taxpayers of 1.5--2 with respect to the net-of-average-tax rate. The corresponding flow elasticity is 7.2. Despite these large behavioral responses, the reform did not increase revenue per capita in the canton. Finally, I find small positive effects on local employment. However, in-movers with high incomes were not more likely to also work in the canton, and I cannot rule out that employment effects were driven by the simultaneous reduction in corporate income taxes.},
  keywords = {Wealth Taxation},
  note = {103441}
}

{"_id":"8dCsaDniAgHFn2jSq","bibbaseid":"martinez-mobilityresponsestotheestablishmentofaresidentialtaxhavenevidencefromswitzerland-2022","author_short":["Martínez, Isabel Z."],"bibdata":{"bibtype":"article","type":"article","title":"Mobility Responses to the Establishment of a Residential Tax Haven: Evidence from Switzerland","author":[{"firstnames":[],"propositions":[],"lastnames":["Martínez, Isabel Z."],"suffixes":[]}],"year":"2022","month":"May","journal":"Journal of Urban Economics","volume":"129","pages":"103441","doi":"10.1016/j.jue.2022.103441","url":"https://doi.org/10.1016/j.jue.2022.103441","abstract":"I analyze mobility responses to a tax reform that established the Swiss canton of Obwalden as a tax haven in 2006. The reform, which included a regressive income tax schedule, was explicitly aimed at attracting the top 1%. Difference-in-Differences (DiD) estimations comparing Obwalden to all other cantons confirm that the reform successfully attracted high-income taxpayers: by 2016, the share of top earners in the canton had doubled, and average income per taxpayer was 16% higher relative to 2005. Based on individual tax return data, I estimate the mobility elasticity with a two-stage least square (2SLS) approach, which isolates the identifying variation in the tax rate stemming from the 2006 reform only. I find a large elasticity of the stock of high-income taxpayers of 1.5–2 with respect to the net-of-average-tax rate. The corresponding flow elasticity is 7.2. Despite these large behavioral responses, the reform did not increase revenue per capita in the canton. Finally, I find small positive effects on local employment. However, in-movers with high incomes were not more likely to also work in the canton, and I cannot rule out that employment effects were driven by the simultaneous reduction in corporate income taxes.","keywords":"Wealth Taxation","note":"103441","bibtex":"@article{Martinez2022,\n title = {Mobility Responses to the Establishment of a Residential Tax Haven: Evidence from {{Switzerland}}},\n author = {Mart{\\'i}nez, Isabel Z.},\n year = {2022},\n month = may,\n journal = {Journal of Urban Economics},\n volume = {129},\n pages = {103441},\n doi = {10.1016/j.jue.2022.103441},\n url = {https://doi.org/10.1016/j.jue.2022.103441},\n abstract = {I analyze mobility responses to a tax reform that established the Swiss canton of Obwalden as a tax haven in 2006. The reform, which included a regressive income tax schedule, was explicitly aimed at attracting the top 1\\%. Difference-in-Differences (DiD) estimations comparing Obwalden to all other cantons confirm that the reform successfully attracted high-income taxpayers: by 2016, the share of top earners in the canton had doubled, and average income per taxpayer was 16\\% higher relative to 2005. Based on individual tax return data, I estimate the mobility elasticity with a two-stage least square (2SLS) approach, which isolates the identifying variation in the tax rate stemming from the 2006 reform only. I find a large elasticity of the stock of high-income taxpayers of 1.5--2 with respect to the net-of-average-tax rate. The corresponding flow elasticity is 7.2. Despite these large behavioral responses, the reform did not increase revenue per capita in the canton. Finally, I find small positive effects on local employment. However, in-movers with high incomes were not more likely to also work in the canton, and I cannot rule out that employment effects were driven by the simultaneous reduction in corporate income taxes.},\n keywords = {Wealth Taxation},\n note = {103441}\n}\n\n","author_short":["Martínez, Isabel Z."],"key":"Martinez2022","id":"Martinez2022","bibbaseid":"martinez-mobilityresponsestotheestablishmentofaresidentialtaxhavenevidencefromswitzerland-2022","role":"author","urls":{"link":"https://doi.org/10.1016/j.jue.2022.103441"},"keyword":["Wealth Taxation"],"metadata":{"authorlinks":{}},"downloads":1},"bibtype":"article","biburl":"https://bibbase.org/f/nKAPSyp34A9azBzJd/GCWealthProject_WealthResearchLibrary.bib","dataSources":["hHZFQp7q53h3BYKe8"],"keywords":["wealth taxation"],"search_terms":["mobility","responses","establishment","residential","tax","haven","evidence","switzerland","martínez"],"title":"Mobility Responses to the Establishment of a Residential Tax Haven: Evidence from Switzerland","year":2022,"downloads":1}