Tax Effort of Local Governments and its Determinants: The Spanish Case
Jaime Valles-Gimenez () and
Anabel Zarate-Marco ()
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Jaime Valles-Gimenez: Department of Public Economics, Faculty of Economics and Business, University of Zaragoza
Anabel Zarate-Marco: Department of Public Economics, Faculty of Economics and Business, University of Zaragoza
Annals of Economics and Finance, 2017, vol. 18, issue 2, 323-348
We have implemented frontier techniques to analyse the local tax effort and its determinants. The results show that municipalities have been quite responsible on average (tax efforts between 72-85 percent), although most municipalities can increase their tax efforts both making a more intensive use of their tax authority and improving the efficiency of their tax collection. To respond to the financing problems of municipalities near the tax frontier, it would be desirable to reform the legal framework to allow a greater tax capacity while leaving the decision on how to use this potential in hands of each unit of government.
Keywords: Local taxes; Tax effort; Frontier techniques; Efficiency; Use of tax authority (search for similar items in EconPapers)
JEL-codes: H71 H21 H12 H77 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2017:v:18:i:2:valles-gimenez
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