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Spatial diversification of property tax policy – Searching for yardstick competition in Polish metropolitan areas

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  • Małkowska, Agnieszka
  • Telega, Agnieszka
  • Głuszak, Michał
  • Marona, Bartłomiej

Abstract

This article contributes to the ongoing debate on local tax policy-making, in particular regarding yardstick competition in the area-based property taxation system. Based on data from 300 municipalities located in ten metropolitan areas in Poland over ten years, we identify whether we are faced with tax mimicking induced by political considerations in tax rates setting. In particular, we seek to identify whether the spatial interdependence of property tax rates set by local governments of Polish municipalities is driven by a yardstick competition mechanism.

Suggested Citation

  • Małkowska, Agnieszka & Telega, Agnieszka & Głuszak, Michał & Marona, Bartłomiej, 2021. "Spatial diversification of property tax policy – Searching for yardstick competition in Polish metropolitan areas," Land Use Policy, Elsevier, vol. 109(C).
    • Handle: RePEc:eee:lauspo:v:109:y:2021:i:c:s0264837721003367
    DOI: 10.1016/j.landusepol.2021.105613
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    More about this item

    Keywords

    Yardstick competition; Tax mimicking; Spatial interdependence; Metropolitan areas; Area-based property tax;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H79 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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