Assessing the effects of local taxation using microgeographic data

Gilles Duranton, Laurent Gobillon and Henry Overman

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

JEL-codes: E6 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2011-09
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Citations: View citations in EconPapers (120)

Published in The Economic Journal, September, 2011, 121(555), pp. 1017 - 1046. ISSN: 0013-0133

Downloads: (external link)
http://eprints.lse.ac.uk/41367/ Open access version. (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 (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)
Working Paper: Assessing the effects of local taxation using microgeographic data (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:41367

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