To assemble to resemble? A study of tax disparities among French municipalities
AbstractThe purpose of this paper is to analyze the effect of inter-municipal cooperation on local taxation. Municipalities that join/create an inter-municipal jurisdiction choose between three tax regimes, which may induce both horizontal and vertical tax externalities. Using the differences in differences method with a quasi-exhaustive panel for French municipalities over the 1994-2010 period, we show a positive causal effect of cooperation on the level of cumulative tax rates (i.e. the sum of municipal and inter-municipal tax rates). Moreover, we show that cooperation leads to a convergence of tax rates within an inter-municipal structure, which thus reduces tax disparities among municipalities.
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Bibliographic InfoPaper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2011/13.
Length: 37 pages
Date of creation: 2011
Date of revision:
Inter-municipal cooperation; tax competition; fiscal disparities;
Other versions of this item:
- Marie-Laure Breuille & Pascale Duran-Vigneron & Anne-Laure Samson, 2011. "To assemble to resemble? A study of tax disparities among French municipalities," Discussion Papers 1104, Exeter University, Department of Economics.
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-08-02 (Accounting & Auditing)
- NEP-ALL-2011-08-02 (All new papers)
- NEP-EUR-2011-08-02 (Microeconomic European Issues)
- NEP-GEO-2011-08-02 (Economic Geography)
- NEP-PBE-2011-08-02 (Public Economics)
- NEP-PUB-2011-08-02 (Public Finance)
- NEP-URE-2011-08-02 (Urban & Real Estate Economics)
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