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An Empitical Analysis of Political and Informative Trends on Municipalities of an Italian Region

Raffaella Santolini

No 294, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: The aim of this paper is to conduct an empirical investigation regarding the presence of political and informative trends in tax setting of local governments as an alternative theoretical explanation to the tax mimick-ing. Both phenomena have been tested on municipalities' cross-sectional data of the Marche region with a spatial econometrics model. Discrimi-nating among several sources of tax mimicking, including public spend-ing spill-over, some evidence was found in favour of the political trend. As regards the informative trend, non significant results were observed testing tax interaction among heterogeneous coalitions. However, some evidence is present on local public spending.

Keywords: informative trend; political trend; spatial econometrics; tax mimicking (search for similar items in EconPapers)
JEL-codes: C31 H71 H72 H77 (search for similar items in EconPapers)
Pages: 24
Date: 2007-07
New Economics Papers: this item is included in nep-geo, nep-pbe, nep-pol and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:anc:wpaper:294

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