English
 
Help Privacy Policy Disclaimer
  Advanced SearchBrowse

Item

ITEM ACTIONSEXPORT
  Identifying Tax-Setting Responses from Local Fiscal Policy Programs

Merlo, V., Schanbacher, A., Thunecke, G., & Wamser, G. (2023). Identifying Tax-Setting Responses from Local Fiscal Policy Programs. Working Paper of the Max Planck Institute for Tax Law and Public Finance, No. 2023-23. doi:10.2139/ssrn.4470393.

Item is

Files

show Files

Locators

show

Creators

show
hide
 Creators:
Merlo, Valeria1, Author
Schanbacher, Andreas1, Author
Thunecke, Georg2, Author           
Wamser, Georg, Author
Affiliations:
1External Organizations, ou_persistent22              
2Public Economics, MPI for Tax Law and Public Finance, Max Planck Society, ou_830552              

Content

show
hide
Free keywords: local public finance, tax competition, yardstick competition, spatial interaction, tax setting, marginal cost of public funds
 Abstract: This paper studies tax policy interaction among local governments for both mobile and immobile tax bases. We exploit exogenous changes in the local tax setting of German municipalities due to participation in state debt reduction programs to learn about the size, scope and nature of strategic interaction among local governments. Our results suggest strong and significant tax policy responses both in corporate as well as in property tax rates. Our estimates imply response function gradients in the range of 0.3 to 0.7, depending on the type of tax and state. Policy spillovers from property tax rates remain very local, which is consistent with yardstick competition behavior.

Details

show
hide
Language(s): eng - English
 Dates: 2023-12-21
 Publication Status: Published online
 Pages: 64
 Publishing info: -
 Table of Contents: -
 Rev. Type: -
 Identifiers: DOI: 10.2139/ssrn.4470393
 Degree: -

Event

show

Legal Case

show

Project information

show

Source 1

show
hide
Title: Working Paper of the Max Planck Institute for Tax Law and Public Finance
Source Genre: Series
 Creator(s):
Affiliations:
Publ. Info: -
Pages: - Volume / Issue: No. 2023-23 Sequence Number: - Start / End Page: - Identifier: -