Assessing the Effects of Local Taxation Using Microgeographic Data

Gilles Duranton, Laurent Gobillon and Henry Overman

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We study the impact of local taxation on the location and growth of firms. Our empirical methodology pairs establishments across jurisdictional boundaries to estimate the impact of taxation. Our approach improves on existing work as it corrects for unobserved establishment heterogeneity, for unobserved time-varying site specific effects, and for the endogeneity of local taxation. Applied to data for English manufacturing establishments we find that local taxation has a negative impact on employment growth, but no effect on entry.

Keywords: Local taxation; spatial differencing; borders (search for similar items in EconPapers)
JEL-codes: H22 H71 R38 (search for similar items in EconPapers)
Date: 2006-08
New Economics Papers: this item is included in nep-geo, nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://cep.lse.ac.uk/pubs/download/dp0748.pdf (application/pdf)

Related works:
Journal Article: Assessing the Effects of Local Taxation using Microgeographic Data (2011)
Working Paper: Assessing the effects of local taxation using microgeographic data (2011)
Working Paper: Assessing the Effects of Local Taxation using MicroGeographic Data (2011)
Working Paper: Assessing the Effects of Local Taxation using MicroGeographic Data (2011)
Working Paper: Assessing the Effects of Local Taxation using Microgeographic Data (2010)
Working Paper: Assessing the Effects of Local Taxation Using Microgeographic Data (2006)
Working Paper: Assessing the effects of local taxation using microgeographic data (2006)
Working Paper: Assessing the effects of local taxation using microgeographic data (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0748

Access Statistics for this paper

More papers in CEP Discussion Papers from Centre for Economic Performance, LSE
Bibliographic data for series maintained by ().