EconPapers    
Economics at your fingertips  
 

Property tax interaction among overlapping local jurisdictions: quasi-experimental evidence from school bond referenda

Yoon-Jung Choi ()
Additional contact information
Yoon-Jung Choi: Syracuse University

International Tax and Public Finance, 2022, vol. 29, issue 3, No 1, 537-580

Abstract: Abstract This study aims to extend the study of property tax competition to a highly fragmented local context. Applying the tax competition theory to the property tax, I estimate the causal effect of a property tax increase at one level of government on fiscal decisions of another level of overlapping governments. To address endogeneity concerns in jurisdictional overlap, I employ different quasi-experimental approaches based on school bond referenda, using regression discontinuity (RD) and difference-in-differences (DiD) frameworks. The RD and DiD estimates together suggest that an increase in school taxes would eventually lead to higher tax rates in overlapping cities. The findings confirm the existence of tax competition, which is consistent with the yardstick competition model. Furthermore, given the cross-district heterogeneity in taxing capacity and intergovernmental constraints, the results indicate the presence of power dynamics among localities.

Keywords: Vertical tax competition; Yardstick competition; Property taxes (search for similar items in EconPapers)
JEL-codes: H71 H73 H74 H77 R51 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10797-021-09678-x Abstract (text/html)
Access to full text is restricted to subscribers.

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:kap:itaxpf:v:29:y:2022:i:3:d:10.1007_s10797-021-09678-x

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

DOI: 10.1007/s10797-021-09678-x

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-07-02
Handle: RePEc:kap:itaxpf:v:29:y:2022:i:3:d:10.1007_s10797-021-09678-x