The Political Geography of Tax H(e)avens and Tax Hells

In this paper, whether the geography of a country is related to its pattern of taxation is investigated. Central to the argument is the ongoing international integration in the last decades. In some cases, the process has advanced to the point at which all formal constraints to mobility have been abandoned. This development has also greatly improved the mobility of households across states or national borders. A simple framework is considered in which households differ across incomes and national tax policies are democratically determined.