Transfery wyrównawcze i opodatkowanie lokalne. Przypadek Polski

Monika Banaszewska

Gospodarka Narodowa-The Polish Journal of Economics, 2023, vol. 2023, issue 2

Abstract: This paper uses data on real estate tax revenue obtained by Polish municipalities from 2005 to 2017 to determine whether equalisation grants discourage local governments from collecting their own revenue. This question lies at the heart of efforts to build revenue equalisation systems for local government units. A discontinuous change in the transfer scheme makes it possible to employ a quasi-experimental approach (difference-in-differences estimation). An increase in the vertical equalisation rate is found to diminish the tax effort of municipalities that receive equalisation grants. The income effect of these grants is also documented. The research results indicate that shifts in an institutional setting trigger permanent changes in local fiscal policies. Moreover, it has been found that the effect increases after a few years and remains significant in the medium term. This implies that any modifications in the sub-national fiscal framework should be preceded by thorough analysis and consultations.

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/359369/files/Banaszewska.pdf (application/pdf)

Related works:
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:ags:polgne:359369

DOI: 10.22004/ag.econ.359369

Access Statistics for this article

More articles in Gospodarka Narodowa-The Polish Journal of Economics from Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().