To assemble to resemble? A study of tax disparities among French municipalities

Marie-Laure Breuillé (), Pascale Duran-Vigneron and Anne-Laure Samson
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Anne-Laure Samson: LEDA-LEGOS, University Paris Dauphine

No 1104, Discussion Papers from University of Exeter, Department of Economics

Abstract: The purpose of this paper is to analyze the effect of inter-municipal cooperation on local taxation. Municipalities that join/create an inter-municipal jurisdiction choose between three tax regimes, which may induce both horizontal and vertical tax externalities. Using the differences in differences method with a quasi-exhaustive panel for French municipalities over the 1994-2010 period, we show a positive causal effect of cooperation on the level of cumulative tax rates (i.e. the sum of municipal and inter-municipal tax rates). In addition, we show that cooperation leads to a convergence of tax rates within an inter-municipal structure, which thus reduces tax disparities among municipalities.

Keywords: Inter-municipal cooperation; tax competition; fiscal disparities. (search for similar items in EconPapers)
JEL-codes: H23 H7 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-acc, nep-eur, nep-geo and nep-ure
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Citations: View citations in EconPapers (1)

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https://exetereconomics.github.io/RePEc/dpapers/DP1104.pdf (application/pdf)

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Working Paper: To assemble to resemble? A study of tax disparities among French municipalities (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:exe:wpaper:1104

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