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Tax mimicking in French counties

Author

Listed:
  • Asmae AQZZOUZ

    (LEAD, University of Toulon)

  • Michel DIMOU

    (LEAD, University of Toulon)

Abstract

The objective of this paper is to study tax mimicking and its sources in two French regions: Provence-Alpes-Côte d’Azur (PACA) and Rhône-Alpes. One of the most original aspects of this work is that it applies to a very narrow spatial level of analysis, the county level. The results confirm that the counties in the PACA and Rhône-Alpes regions mimic their neigh-boring counties’ policies in terms of property tax rates. Several socio-demographic, fiscal and political variables such as population size, unemployment rate, per capita grants and left-wing incumbents are statistically significant. The results show that yardstick competi-tion is the source of property tax mimicking in counties in the PACA region while spillover effects affect both regions’ tax mimicking.

Suggested Citation

  • Asmae AQZZOUZ & Michel DIMOU, 2022. "Tax mimicking in French counties," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 55, pages 113-132.
    • Handle: RePEc:tou:journl:v:55:y:2022:p:113-132
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    Cited by:

    1. Asmae AQZZOUZ & Nathalie PICARD, 2023. "Residential Mobility And Life Cycle: Identifying The Role Of Local Taxes," Working Papers of BETA 2023-43, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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    More about this item

    Keywords

    Tax-mimicking ; Yardstick competition ; Spillover effects ; France;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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