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Taxable Agglomeration Rent: Evidence From A Panel Data

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  • Sylvie Charlot
  • Sonia Paty

Abstract

The main purpose of this paper is to test the existence of a taxable agglomeration rent in the French local tax setting by taking account the tax interactions among the urban jurisdictions. After presenting a simple economic geography model with fiscal interactions, we estimate a model of tax setting for the local business tax using the econometrics techniques on panel data for 1993 to 2002. We observe that the relationship between tax rate and fiscal base gives presumption of the existence of a taxable agglomeration rent.

Suggested Citation

  • Sylvie Charlot & Sonia Paty, 2006. "Taxable Agglomeration Rent: Evidence From A Panel Data," INRA UMR CESAER Working Papers 2006/1, INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux.
    • Handle: RePEc:ceo:wpaper:20
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    Cited by:

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    2. Olga M. Karpova & Igor A. Mayburov, 2022. "Assessment of the Influence of Tax and Socio-Economic Factors on the Decision on the Territorial Location of Business in Russia," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 21(2), pages 325-364.

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    More about this item

    Keywords

    Spatial autocorelation panel; Economic geography; Fiscal agglomeration rent;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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