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.
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 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.
- Samson, Anne-Laure & Duran-Vigneron, Pascale & Breuillé, Marie-Laure, 2011. "To assemble to resemble ? A study of tax disparities among French municipalities," Economics Papers from University Paris Dauphine 123456789/6892, Paris Dauphine University.
- 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)
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: ().
If references are entirely missing, you can add them using this form.