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Do jurisdictions compete on taxes? A meta-regression analysis

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  • Joan Costa-Font
  • Filipe De-Albuquerque
  • Hristos Doucouliagos

Abstract

A sizable empirical literature examines government fiscal interactions. However, the empirical evidence is very mixed. We apply meta-regression analysis to quantify the size of inter-jurisdictional fiscal interactions and to explain the heterogeneity in empirical estimates. Several robust results emerge. While there are significant country differences, tax interactions exist in all countries studied and they are strongest in terms of total tax and weakest in terms of income tax. Interactions differ according to level of government: compared to the municipal level, horizontal tax competition is stronger when the jurisdiction is a county or a nation. We show that tax competition has actually not grown over time and that econometric specifications and estimation strategies influence reported fiscal interactions. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Joan Costa-Font & Filipe De-Albuquerque & Hristos Doucouliagos, 2014. "Do jurisdictions compete on taxes? A meta-regression analysis," Public Choice, Springer, vol. 161(3), pages 451-470, December.
    • Handle: RePEc:kap:pubcho:v:161:y:2014:i:3:p:451-470
    DOI: 10.1007/s11127-014-0170-6
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    2. Heimberger, Philipp, 2021. "Corporate tax competition: A meta-analysis," European Journal of Political Economy, Elsevier, vol. 69(C).
    3. Ania, Ana B. & Wagener, Andreas, 2016. "Decentralized redistribution in a laboratory federation," Journal of Urban Economics, Elsevier, vol. 93(C), pages 49-59.
    4. repec:wly:econjl:v::y:2017:i:605:p:f236-f265 is not listed on IDEAS
    5. Antoine Cazals & Pierre Mandon, 2015. "Political Budget Cycles: Manipulation of Leaders or Bias from Research? A Meta-Regression Analysis," CERDI Working papers halshs-01238883, HAL.
    6. Zareh Asatryan & Annika Havlik & Frank Streif, 2017. "Vetoing and inaugurating policy like others do: evidence on spatial interactions in voter initiatives," Public Choice, Springer, vol. 172(3), pages 525-544, September.
    7. Rota-Graziosi, Grégoire, 2019. "The supermodularity of the tax competition game," Journal of Mathematical Economics, Elsevier, vol. 83(C), pages 25-35.
    8. Antoine Cazals & Pierre Mandon, 2015. "Political Budget Cycles: Manipulation of Leaders or Bias from Research? A Meta-Regression Analysis," Working Papers halshs-01238883, HAL.
    9. Antoine Cazals & Pierre Mandon, 2016. "Political Budget Cycles: Manipulation from Leaders or Manipulation from Researchers? Evidence from a Meta-Regression Analysis," Working Papers halshs-01320586, HAL.
    10. John P. A. Ioannidis & T. D. Stanley & Hristos Doucouliagos, 2017. "The Power of Bias in Economics Research," Economic Journal, Royal Economic Society, vol. 127(605), pages 236-265, October.
    11. Fabien Candau & Jacques Le Cacheux, 2018. "Taming Tax Competition with a European Corporate Income Tax," Revue d'économie politique, Dalloz, vol. 128(4), pages 575-611.

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    More about this item

    Keywords

    Fiscal interactions; Horizontal tax competition; Meta-regression analysis; H0; H73; R1;
    All these keywords.

    JEL classification:

    • H0 - Public Economics - - General
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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