Tax Competition and Yardstick Competition
AbstractThis paper uses the ratio of announced rent value to average market price of land as a proxy for the real land tax rate, and employs the spatial econometric approach to estimate the tax competition among local jurisdictions in Taiwan. The empirical results show that the real land tax rate reflects spatial auto-correlation and tax rate interactions among local jurisdictions in Taiwan. Moreover, this paper estimates the coefficient of the tax rate reaction function as 0.316, which is close to the estimates in the international literature. In addition, we find that the direct neighbors to a specific jurisdiction are likely to affect local tax setting behavior more than indirect neighbors. Further, by examining how elected representatives¡¦ votes in local campaigns relate to real land tax rates for local jurisdictions, this paper also shows that yardstick competition is likely to be a source of tax competition in Taiwan.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by College of Business, Feng Chia University, Taiwan in its journal Journal of Economics and Management.
Volume (Year): 5 (2009)
Issue (Month): 1 (January)
tax competition; yardstick competition; spatial auto-correlation; land tax rate setting;
Find related papers by JEL classification:
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yi-Ju Su).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.