David Agrawal (University of Kentucky)"The Effect of Taxes on Where Superstars Work“
Abstract: Prior studies show that taxes matter for the residential locations of high-income earners. But, states raise a significant share of income taxes from nonresidents, especially superstars. Using superstar athletes and variation in state tax rates, we provide causal evidence on the effect of the net-of-participation tax rate on the location of labor supply. The elasticity of working in a state is 0.32, with larger effects at the top of the earnings distribution. Our results suggest a novel margin of labor supply responses for top-earners: the spatial relocation of labor supply by nonresidents.
David R. Agrawal is an Associate Professor in the Martin School of Public Policy & Administration and the Department of Economics at the University of Kentucky and a Fellow in the CESifo Network. He is Editor-in-Chief of International Tax and Public Finance. David's primary field of research is public finance - with an emphasis on taxation and fiscal federalism. David's research agenda focuses on theoretical and empirical models of: tax competition and fiscal federalism, the mobility of people and firms in response to taxes, and sales and excise taxes.
Selected publications:
* The Internet as a Tax Haven?,
American Economic Journal: Economic Policy, forthcoming
* Technology and Tax Systems (with David Wildasin),
Journal of Public Economics, May 2020
*Will Destination-based Taxes Be Fully Exploited When Available? An Application to the U.S. Commodity Tax System (with Mohammed Mardan), J
ournal of Public Economics, January 2019
* The Tax Gradient: Spatial Aspects of Fiscal Competition,
American Economic Journal: Economic Policy, May 2015