Kurt Schmidheiny

Kurt Schmidheiny

Advanced Public Economics: Fiscal Federalism

Universität Basel, Spring 2020
Master in Wirtschaftswissenschaften
Prof. Dr. Kurt Schmidheiny

General Information:

Assigned Readings for Discussion in Class:

Text Book

1. Facts on Fiscal Decentralization in Switzerland and around the World

2. The Tiebout Model

  1. Tiebout, C. (1956), A pure theory of local expenditures. Journal of Political Economy, 64, pp. 416–424.
  2. Bewley, T. F. (1981), A Critique of Tiebout's Theory of Local Public Expenditures. Econometrica, 49(3), pp. 713-740.
  3. Boadway, R., Tremblay, J.-F. (2012), Reassessment of the Tiebout model. Journal of Public Economics, 96, pp. 1063–1078.
  4. Banzhaf, H. Spencer, and Randall P. Walsh (2008), Do People Vote with Their Feet? An Empirical Test of Tiebout’s Mechanism. American Economic Review 98(3), 843–863.
  5. Oates, Wallace E. (2006), The Many Faces of the Tiebout Model. In: The Tiebout Model at Fifty: Essays in Public Economics in Honor of Wallace Oates, edited by William A.Fischel, Cambridge, MA, Lincoln Institute of Land Policy.
  6. Oates, Wallace E. (1999), An Essay on Fiscal Federalism. Journal of Economic Literature, 37, pp. 1120-1149.

3. Urban Sorting Models

  1. Epple, Dennis, Romer, Thomas (1991), Mobility and redistribution. Journal of Political Economy, 99, 828–858.
  2. Epple, D., Platt, G.J. (1998), Equilibrium and local redistribution in an urban economy when households differ in both preferences and income. Journal of Urban Economics, 43, 23–51.
  3. Epple, D., Sieg, H. (1999), Estimating Equilibrium Models of Local Jurisdictions. Journal of Political Economy, 107, 645-681.
  4. Calabrese, S., Epple, D., Romano, R. (2012), Inefficiencies from metropolitan political and fiscal decentralization: failures of Tiebout competition. Review of Economic Studies 79 (3), 1081–1111.
  5. Hansen, Nico A., Kessler, Anke S. (2001), The political geography of Tax H(e)avens and Tax Hells. American Economic Review, 91, 1103–1115.
  6. Schmidheiny, Kurt (2006), Income segregation from local income taxation when households differ in both preferences and incomes. Regional Science and Urban Economics, 36(2), 270–299.
  7. Kuminoff, Nicolai V., V. Kerry Smith, and Christopher Timmins (2013), The New Economics of Equilibrium Sorting and Policy Evaluation Using Housing Markets. Journal of Economic Literature, 51(4), 1007–1062.

4. Tax Competition Models

  1. Richard W. Tresch (2015), Public Finance: A Normative Theory, 3rd edition, Amsterdam: Elsevier. Chapter 29, pp. 487-495.
  2. Sam Bucovetsky (1991), Asymmetric Tax Competition. Journal of Urban Economics, 30, 167-181.
  3. Marius Brülhart, Sam Bucovetsky and Kurt Schmidheiny (2014), Taxes in Cities. In: G. Duranton, J.V. Henderson and W. Strange (eds), Handbook of Regional and Urban Economics, Volume 5.
  4. Michael Keen and Kai A. Konrad (2013), The Theory of International Tax Competition and Coordination. In: Alan J. Auerbach, Raj Chetty, Martin Feldstein and Emmanuel Saez (eds.), Handbook of Public Economics, Vol. 5, Elsevier.
  5. Baldwin, R. E., & Krugman, P. (2004), Agglomeration, integration and tax harmonisation. European Economic Review, 48(1), 1–23.
  6. Marius Brülhart, Mario Jametti and Kurt Schmidheiny (2012), Do Agglomeration Economies Reduce the Sensitivity of Firm Location to Tax Differentials?. Economic Journal, 122, 1069–1093.

5. Multinational Enterprises, Base Erosion and Profit Shifting

  1. Richard W. Tresch (2015), Public Finance: A Normative Theory, 3rd edition, Amsterdam: Elsevier. Chapter 29, pp. 495-500.
  2. Dhammika Dharmapala and Nadine Riedel (2013), Earnings shocks and tax-motivated income-shifting: Evidence from European multinationals. Journal of Public Economics, 97, 95-107.
  3. Thomas Tørsløv, Ludvig Wier, and Gabriel Zucman (2020), The Missing Profits of Nations, NBER working paper 24701, revised April 2020. Project website with data.
  4. OECD, BEPS 2015 Final Reports. Available online at: http://www.oecd.org/tax/beps-2015-final-reports.htm
  5. OECD (2015), Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance, Action 5 - 2015 Final Report, OECD Publishing, Paris.