Do jurisdictions compete on taxes? A meta-regression analysis

Joan Costa-Font, Filipe De-Albuquerque () and Chris Doucouliagos

Public Choice, 2014, vol. 161, issue 3, 470 pages

Abstract: A sizable empirical literature examines government fiscal interactions. However, the empirical evidence is very mixed. We apply meta-regression analysis to quantify the size of inter-jurisdictional fiscal interactions and to explain the heterogeneity in empirical estimates. Several robust results emerge. While there are significant country differences, tax interactions exist in all countries studied and they are strongest in terms of total tax and weakest in terms of income tax. Interactions differ according to level of government: compared to the municipal level, horizontal tax competition is stronger when the jurisdiction is a county or a nation. We show that tax competition has actually not grown over time and that econometric specifications and estimation strategies influence reported fiscal interactions. Copyright Springer Science+Business Media New York 2014

Keywords: Fiscal interactions; Horizontal tax competition; Meta-regression analysis; H0; H73; R1 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:pubcho:v:161:y:2014:i:3:p:451-470

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DOI: 10.1007/s11127-014-0170-6

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