2015-16 CAPPP Faculty Fellow Pablo Fajgelbaum and his collaborators are studying “how worker and firm location responds to changes in state taxes.”

They have found intriguing evidence “suggesting that in the case of the US, harmonising tax rates could lead to significant increases in aggregate economic output.”

Read their full  working paper at the National Bureau of Economic Research (NBER). A short discussion of their findings also appears in Vox, the blog of London’s Centre for Economic Policy Research.

Fajgelbaum, a Faculty Research Fellow at NBER, is an assistant professor in the UCLA Department of Economics.