Culture and Taxes

Intertemporal Labor Supply Substitution? Evidence from the Swiss Income Tax Holidays

“…Liebig et al (2007); Schmidheiny (2006); Brülhart et al (2016); Martinez (2016) study mobility across Swiss Cantons in response to local income or wealth taxes. Kirchgassner and Pommerehne (1996); Eugster and Parchet (2019); Parchet (2018); Brülhart and Parchet (2014) study tax competition in the setting of tax rates by municipalities and cantons.…”

Born to be an Entrepreneur? How Cultural Origin Affects Entrepreneurship

“…(e.g. Eugster et al, 2011Eugster et al, , 2017Eugster and Parchet, 2018) In order to measure entrepreneurial activity, we make use of a comprehensive dataset on the universe of firms founded in Switzerland over the years 2002 -2016. Specifically, these data provide information on the place of origin as well as on the place of residence of the firm founders.…”

“…But also past research has exploited this setting to study the role of culture on various economic outcomes. Eugster and Parchet (2018) show evidence on cultural differences with respect to the desired role of the state: While voters in French-speaking regions regularly favor high We analyze 246 federal referenda between 1981 and 2017 for which the leading We exploit the setting at the Swiss language border within the three bilingual cantons and contrast electoral support for sgv in referenda by municipalities on both sides of the language border. Figure 3 shows the analysis thereby relying on the same distance coding that was described in the previous section.…”

“…These summary statistics correspond to the sample of the baseline estimation in Table 11 Shortest road distances to the language border have been calculated as the shortest distance between a municipality center and the closest municipality center on the other side of the language border. Road distance data between municipalities are taken from search.ch and have been kindly provided by Eugster and Parchet (2018). Slightly different methods for calculating road distances have been used in the literature.…”

The impact of language borders on the spatial decay of agglomeration and competition spillovers

“…Rather, the methodology we employ is simply the most direct method of identifying whether the geography of agglomeration spillovers is affected by linguistic differences, while making no claims as to the mechanisms underlying any such linkages or spillovers. The analysis focuses on Switzerland, which represents an appropriate case‐study for examining these types of differences, because, as underlined by Eugster et al () and Eugster and Parchet (), these clearly defined and sharp language borders are not associated with changes in the geographical or political setting. Neither the nature nor the quality of the institutional and governance set‐up varies according to the local linguistic context, so any observed effects cannot be attributed to either national or regional governance issues.…”