Welcome

I am an Associate Professor at the UB School of Economics and I am affiliated with the Institut d'Economia de Barcelona (I.E.B.) and the CESifo in Munich. I work in the area of Public Economics, most of my work is applied work in Public Finance. I work currently on the effects of taxation on (internal) migration, tax evasion and income shifting, fiscal capacity of governments, and what shapes preferences for redistribution.

 

New working paper:

 

Paraísos Fiscales, Wealth Taxation, and Mobility
(joint with David R. Agrawal and Clara Martínez-Toledano)

 

This paper provides novel evidence on mobility responses to wealth taxation and the resulting effect on wealth inequality dynamics. We study the unique decentralization of the Spanish wealth tax system, after which all regions levied positive tax rates except for Madrid. Using linked administrative wealth and income tax records, we exploit the presence of this "fiscal paradise'' to study the mobility responses of high-wealth individuals and the resulting effect on wealth tax revenue and wealth inequality. We find that five years after the reform, the stock of wealthy individuals in the region of Madrid increases by 10% relative to other regions. However, smaller tax differentials between other regions do not matter for mobility. A theoretical model of evasion and migration suggests that misreporting is the mechanism most consistent with all of the mobility response being driven by the tax haven. Combining subnational wealth inequality series with our estimated elasticities, we show that Madrid's status as a tax haven reduces the effectiveness of raising tax revenue and exacerbates regional wealth inequalities.

The paper can be downloaded at SSRN:

 

 


 


 

            

 

 

Download full CV:

 
 

Contact:

Dirk Foremny
IEB
Facultat d’Economia i Empresa
Universitat de Barcelona
c/ John M. Keynes, 1-11
08034 Barcelona (SPAIN)

 

Mail:

foremny(at)ub.edu

 

 

ORCID iD iconorcid.org/0000-0002-8987-231X

 

Office hours for students:
I hold my office hours upon appointment at the
Department of Economics,
Tower 6, Office 6101.
Please send me an email to arrange a meeting.

 

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