Table 3 Model parameters
From: Tiebout sorting with progressive income taxation and a fiscal equalization scheme
| Â | Symbol | Value | Units |
|---|---|---|---|
Households | |||
Population | N | 360 | k |
Income | |||
Aggregate income | Y | 27,230 | Million CHF |
Household income | y | Â | Â |
Log-normal-distributed | Â | Â | Â |
\(\cdots\)with shape parameters | \(\mu ^{dist}\) | 3.7195 | Â |
| Â | \(\sigma ^{dist}\) | 0.9789 | Â |
\(\cdots\)limits | \({\overline{y}}\) | 1,000 | k CHF |
| Â | \({\underline{y}}\) | 15 | k CHF |
Subsistence levels | |||
Public provision | \(\beta _g\) | 10.75 | Â |
Housing | \(\beta _h\) | 0.50 | Â |
Numeraire | \(\beta _x\) | 5.00 | Â |
Preference parameters | |||
Housing | \(\gamma\) | 0.30 | Â |
Public provision | \(\alpha\) | Â | Â |
\(\gamma\)-distributed | Â | Â | Â |
\(\cdots\)with shape parameters | a | 1 | Â |
| Â | b | 49 | Â |
\(\cdots\)limits | \({\overline{\alpha }}\) | 1 | Â |
| Â | \({\underline{\alpha }}\) | 0 | Â |
Housing market | |||
Housing supply elasticity | \(\theta\) | 1.00 | Â |
Land size | |||
Poor municipality | \(L_1\) | 25 | \(\cdot 100\) ha |
Rich municipality | \(L_2\) | 25 | \(\cdot 100\) ha |
Public provision | |||
Spillovers | \(\sigma , \nu\) | 0.20 | |
Rivalry | \(\rho\) | 0.75 | |
Fiscal equalization scheme | |||
Average fiscal capacity | \(FC^{avg}\) | 3 | k CHF |
Lower bound | \(\ell\) | 0.95 | Â |
Upper bound | \(\upsilon\) | 1.10 | Â |
Haircut | \(\tau\) | 0.70 | Â |
Cantonal tax scheme | |||
‘Married’ rate, see Table 1 | |||