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Property tax and fiscal discipline in OECD countries

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  • Presbitero, Andrea F.
  • Sacchi, Agnese
  • Zazzaro, Alberto

Abstract

This paper investigates the effects of property taxation on fiscal discipline for a sample of OECD countries over the period 1973–2011. We find that aggregate property taxation in total tax revenues is not statistically correlated with the primary surplus-to-GDP ratio. In contrast, a greater reliance on property taxes pertaining to sub-national governments contributes to fiscal discipline, suggesting that fiscal decentralization should favor responsive tax base instruments.

Suggested Citation

  • Presbitero, Andrea F. & Sacchi, Agnese & Zazzaro, Alberto, 2014. "Property tax and fiscal discipline in OECD countries," Economics Letters, Elsevier, vol. 124(3), pages 428-433.
    • Handle: RePEc:eee:ecolet:v:124:y:2014:i:3:p:428-433
    DOI: 10.1016/j.econlet.2014.06.027
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Sorpresa: c’è una tassa che aumenta la disciplina fiscale
      by Andrea Filippo Presbitero, Agnese Sacchi e Alberto Zazzaro in La Voce on 2014-05-16 14:04:45

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    Cited by:

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    2. Picchio, Matteo & Santolini, Raffaella, 2020. "Fiscal rules and budget forecast errors of Italian municipalities," European Journal of Political Economy, Elsevier, vol. 64(C).
    3. Agnese Sacchi & Simone Salotti, 2017. "The influence of decentralized taxes and intergovernmental grants on local spending volatility," Regional Studies, Taylor & Francis Journals, vol. 51(4), pages 507-522, April.
    4. Jorge Martinez-Vazquez & Santiago Lago-Peñas & Agnese Sacchi, 2017. "The Impact Of Fiscal Decentralization: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 31(4), pages 1095-1129, September.
    5. Liangliang Liu & Donghong Ding & Jun He, 2019. "The welfare effects of fiscal decentralization: a simple model and evidence from China," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(1), pages 417-434, January.
    6. bucci, valeria & ferrara, giancarlo & resce, giuliano, 2022. "Fiscal decentralization and efficiency: empirical evidence from Italian municipalities," MPRA Paper 111515, University Library of Munich, Germany.
    7. Alberto Batinti & Luca Andriani & Andrea Filippetti, 2019. "Local Government Fiscal Policy, Social Capital and Electoral Payoff: Evidence across Italian Municipalities," Kyklos, Wiley Blackwell, vol. 72(4), pages 503-526, November.
    8. Zuba-Ciszewska, Maria & Pomorski, Piotr, 2020. "Economic Situation of Milk Producers and Their Opinions Regarding Taxation of This Agricultural Activity," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 311221, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    9. Šárka Sobotovičová, 2019. "Vnímání daně z nemovitých věcí v ČR," Working Papers 0065, Silesian University, School of Business Administration.
    10. Santiago Lago-Peñas & Agnese Sacchi & Pablo Simon-Cosano, 2014. "Who honor the rules of federalism? Party system nationalization and fiscal performance," Working Papers. Collection A: Public economics, governance and decentralization 1409, Universidade de Vigo, GEN - Governance and Economics research Network.
    11. Jana Janoušková & Šárka Sobotovičová, 2021. "Approaches to Real Estate Taxation in the Czech Republic and the EU Countries," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 27(1), pages 61-73, February.
    12. Janoušková, Jana & Sobotovičová, Šárka, 2019. "Fiscal autonomy of municipalities in the context of land taxation in the Czech Republic," Land Use Policy, Elsevier, vol. 82(C), pages 30-36.
    13. Awasthi, Rajul & Nagarajan, Mohan & Deininger, Klaus W., 2021. "Property taxation in India: Issues impacting revenue performance and suggestions for reform," Land Use Policy, Elsevier, vol. 110(C).
    14. Andrea Filippetti & Agnese Sacchi, 2016. "Decentralization and economic growth reconsidered: The role of regional authority," Environment and Planning C, , vol. 34(8), pages 1793-1824, December.
    15. Tommaso Oliviero & Agnese Sacchi & Annalisa Scognamiglio & Alberto Zazzaro, 2019. "House prices and immovable property tax: Evidence from OECD countries," Metroeconomica, Wiley Blackwell, vol. 70(4), pages 776-792, November.
    16. Angelovska Julijana & Časni Anita Čeh, 2022. "The influence of recurrent property income and expenditure on house prices in European Union countries: Evidence from a panel model," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 8(1), pages 32-40, June.

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    More about this item

    Keywords

    Property tax; Tax decentralization; Sub-national governments; Fiscal imbalance;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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