Samenvatting

This paper empirically investigates whether the Flemish local income tax base yield in 306 Flemish municipalities is sensitive to changes in the local crime level between 2000 and 2014. There are two underlying assumptions. First, in a Tiebout world, rational voters holding the local government accountable for the safety of its citizens move when the local level of security becomes too greatly alienated from what they want it to be (first assumption). If migration is due to crime, the wealthier citizens are expected to move first. Consequently, the average income per capita and thus the income distribution will be affected, which in turn will influence the local income tax base yield (second assumption). By confirming both assumptions, evidence is presented for a relation between changes in local crime rates and the income tax base yield of Flemish municipalities, occurring through household mobility.