Qari, Salmai; Konrad, Kai A.; Geys, Benny
Patriotism, taxation and international mobility.
WZB Discussion Paper, SP II 2009-03
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For patriotic citizens, living in their native country is intrinsically preferable
compared to living in the diaspora. In this paper, we analyze the implications of
such a patriotic lock-in in a world with international migration and redistributive
taxation. In a formal model of redistribution with international migration and
fiscal competition we derive the main hypothesis: that countries with a more
patriotic population should have higher redistributive taxes. Using ISSP survey
data and combining them with OECD taxation data, we find robust evidence
suggesting that a) higher patriotism is associated with higher tax burdens, and
b) this relation is stronger for the upper-middle range of the income distribution.