@techreport{NBERw13995,
 title = "The Unequal Geographic Burden of Federal Taxation",
 author = "David Y. Albouy",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "13995",
 year = "2008",
 month = "May",
 URL = "http://www.nber.org/papers/w13995",
 abstract = {In the United States, workers in cities offering above-average wages – cities with high productivity, low quality-of-life, or inefficient housing sectors – pay 30 percent more in federal taxes than otherwise identical workers in cities offering below-average wages. According to simulation results, taxes lower long-run employment levels in high-wage areas by 17 percent and land and housing prices by 28 and 6 percent, causing locational inefficiencies costing 0.33 percent of income, or $40 billion in 2008. Employment is shifted from North to South and from urban to rural areas. Tax deductions index taxes partially to local cost-of-living, improving locational efficiency.},
}