We ask whether inter-municipal cooperation serve as a platform by which municipalities coordinate tax policies and reduce the intensity of tax competition. In this paper, we focus on inter-municipal cooperation in form of inter-local industrial parks. We apply the generalized synthetic control method to analyze the causal impact of inter-local industrial parks on municipal tax-setting behavior using data on municipalities from four West-German states between 2000 and 2018. The analysis does not support the notion that inter-local industrial parks constitute a platform used for tax coordination

Ivo Bischoff () and Reinhold Kosfeld ()
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Ivo Bischoff: University of Kassel

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Keywords: Inter-local industrial parks; inter-municipal cooperation; tax competition; gen-eralized synthetic control method; Germany (search for similar items in EconPapers)
JEL-codes: H25 H71 H77 R58 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2021
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:202137

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