Does fiscal cooperation increase local tax rates in urban areas

Sylvie Charlot, Sonia Paty and V. Piguet

Working Papers from Grenoble Applied Economics Laboratory (GAEL)

Abstract: The main purpose of this paper is to assess the effects of fiscal cooperation on local taxation in a decentralized country, using the French experience in urban municipalities. We estimate a model of tax setting for local business tax using spatial and dynamic econometric techniques, for the period 1993-2003 and an unbalanced data set. As predicted by the theory, we find that reducing the number of municipalities is likely to limit tax competition and, as a consequence, increase local business tax rates.

Keywords: FISCAL COOPERATION; TAX COMPETITION; VERTICAL EXTERNALITIES; LOCAL BUSINESS TAX (search for similar items in EconPapers)
JEL-codes: H2 H3 H7 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-acc, nep-geo, nep-pbe, nep-pub and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Does Fiscal Cooperation Increase Local Tax Rates in Urban Areas? (2015)
Working Paper: Does fiscal coopération increase local tax rates in urban areas? (2015)
Working Paper: Does fiscal coopération increase local tax rates in urban areas? (2012)
Working Paper: Does fiscal cooperation increase local tax rates in urban areas (2012)
Working Paper: Does fiscal coopération increase local tax rates in urban areas? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:gbl:wpaper:201202

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