An empirical analysis on intergovernmental strategic interaction in tax policy: Evidence from capital taxation in Japan
AbstractIn this paper, the interrelationship between the capital tax policies of local governments is empirically investigated using a data set from Japan. Reaction functions of local governments, which relate their capital tax rates to those in competing governments and their characteristics, are estimated through both the instrumental variable method and maximum likelihood estimation. The results suggest that a positive relationship exists among local governments in Japan.
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Bibliographic InfoPaper provided by Policy Research Institute, Ministry of Finance Japan in its series Discussion papers with number ron238.
Length: 30 pages
Date of creation: Jul 2012
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ACC-2012-08-23 (Accounting & Auditing)
- NEP-ALL-2012-08-23 (All new papers)
- NEP-PBE-2012-08-23 (Public Economics)
- NEP-URE-2012-08-23 (Urban & Real Estate Economics)
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