EconPapers    
Economics at your fingertips  
 

Local Taxation and Tax Base Mobility: Evidence from a business tax reform in France

Tidiane Ly () and Sonia Paty

No 1811, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: This paper investigates the impact of tax base mobility on local taxation. We first develop a theoretical model in order to examine the connection between local business property taxation and tax base mobility within a metropolitan area. We find that decreasing capital intensity in the tax base increases the business property tax rates unambiguously. We then test this result using a French reform, which changes the composition of the main local business tax base in 2010. Estimations using Difference-in-Differences show that the reduction in the mobility of the tax base indeed results in higher business property tax rates. Housing tax rates were not affected by the reform.

Keywords: Local taxation; Tax base mobility; Tax competition; Difference-in-Differences (search for similar items in EconPapers)
JEL-codes: H71 H72 R50 R51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-acc, nep-pbe, nep-pub and nep-ure
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
ftp://ftp.gate.cnrs.fr/RePEc/2018/1811.pdf (application/pdf)

Related works:
Working Paper: Local taxation and tax base mobility: Evidence from a business tax reform in France (2017)
Working Paper: Local taxation and tax base mobility: Evidence from a business tax reform in France (2017)
Working Paper: Local taxation and tax base mobility: Evidence from a business tax reform in France (2017)
Working Paper: Local taxation and tax base mobility: Evidence from a business tax reform in France (2017)
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:gat:wpaper:1811

Access Statistics for this paper

More papers in Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon Contact information at EDIRC.
Bibliographic data for series maintained by Nelly Wirth ().

 
Page updated 2019-11-11
Handle: RePEc:gat:wpaper:1811