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

Marie-Laure Breuillé (), Pascale Duran-Vigneron and Anne-Laure Samson
Additional contact information
Marie-Laure Breuillé: INRA

No 2011/13, Working Papers from Institut d'Economia de Barcelona (IEB)

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). Moreover, 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)
Pages: 37 pages
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://ieb.ub.edu/wp-content/uploads/2018/04/2011-IEB-WorkingPaper-13.pdf (application/pdf)

Related works:
Working Paper: To assemble to resemble? A study of tax disparities among French municipalities (2011)
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:ieb:wpaper:doc2011-13

Access Statistics for this paper

More papers in Working Papers from Institut d'Economia de Barcelona (IEB) Contact information at EDIRC.
Bibliographic data for series maintained by ().