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Cécile GAUBERT (Berkeley) – " Place-Based Redistribution "

March 30, 2021 @ 3:00 pm - 4:15 pm
Microeconometrics Seminar: Every Tuesday
Time: 03:00 pm – 4:15 pm
Date: 30th of March 2021
by visio
Cécile GAUBERT (Berkeley) – ” Place-Based Redistribution ”

Abstract:Governments around the world redistribute to distressed areas by conditioning taxes and transfers on location. We show that when poor households are spatially concentrated, transfers from one location to another can yield equity gains that outweigh their efficiency costs, even when incomebased transfers are set optimally. Expressions for the optimal transfer size depend on the mobility of households, the earnings responses of movers, and sorting patterns. Surveys find support for targeting tax credits to poor Americans who live in distressed places. A calibration exercise finds optimal transfers of the same order of magnitude as prominent American zone policies. With Patrick Kline and Danny Yagan.


Benoît SCHMUTZ (Pôle d’économie du CREST)
Anthony STRITTMATTER (Pôle d’économie du CREST)