Taxing Our Neighbors? Why Some Sub-National Revenues Are So Small

Jorge Baldrich ()

No 100, Working Papers from Universidad de San Andres, Departamento de Economia

Abstract: This paper analyzes the determinants of local government revenues and the incentives faced by politicians in the design of tax policy. The decision of deepening local tax collections carries costs and benefits for local politicians. Balancing in the margin these costs and benefits allows for an endogenous determination of the taxing level. The paper stresses the role of markets size in determining politicians’ incentives to enact a tax regime. In addition, we provide a rationale for the central government-local government tax ratio as a key tax effort variable. Furthermore, local levels of income inequality are relevant in explaining tax collections.

Keywords: tax; sub-national revenues (search for similar items in EconPapers)
Date: 2010-03, Revised 2010-03
New Economics Papers: this item is included in nep-pbe, nep-pub and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://webacademicos.udesa.edu.ar/pub/econ/doc100.pdf First version, 2010 (application/pdf)

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:sad:wpaper:100

Access Statistics for this paper

More papers in Working Papers from Universidad de San Andres, Departamento de Economia Contact information at EDIRC.
Bibliographic data for series maintained by Maria Amelia Gibbons ().