Decentralization, competition and the local tax mix: Evidence from Flanders
Benny Geys and
Federico Revelli ()
Department of Economics and Statistics Cognetti de Martiis. Working Papers from University of Turin
While numerous studies analyse the determinants of the level and composition of local public spending, little attention has been given to what shapes the choice of tax instruments used by decentralised governments. This paper bridges this gap by investigating the economic and political determinants of the local tax mix in the Flemish region of Belgium, where local governments enjoy extensive fiscal autonomy and have a wide variety of tax instruments available. Specifically, using panel data of 289 Flemish municipalities over the period 1995-2002, we estimate a system of five reduced-form tax revenue-share equations (income, property, business, user fees and other own revenues). The analysis highlights a number of important economic determinants of the observed tax mix (especially the tax base and revenue requirement), while political variables turn out to play a relatively minor role. Finally, the analysis uncovers virtually no evidence of inter-municipal dependence in the determination of the local tax mix.
New Economics Papers: this item is included in nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://www.est.unito.it/do/home.pl/Download?doc=/a ... _wp_geys_revelli.pdf (application/pdf)
Working Paper: Decentralization, Competition and the local tax mix: evidence from Flanders (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:uto:dipeco:200902
Access Statistics for this paper
More papers in Department of Economics and Statistics Cognetti de Martiis. Working Papers from University of Turin
Contact information at EDIRC.
Series data maintained by Piero Cavaleri ().