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Property Tax and Fiscal Discipline in OECD Countries

Author

Listed:
  • Andrea Filippo Presbitero

    () (International Monetary Fund, Universit… Politecnica delle Marche - MoFiR)

  • Agnese Sacchi

    () (Faculty of Economics - Universitas Mercatorum (Rome, Italy);, Governance and Economics Research Network, University of Vigo (Spain))

  • Alberto Zazzaro

    () (Universit… Politecnica delle Marche, MoFiR)

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

  • Andrea Filippo Presbitero & Agnese Sacchi & Alberto Zazzaro, 2014. "Property Tax and Fiscal Discipline in OECD Countries," Mo.Fi.R. Working Papers 95, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  • Handle: RePEc:anc:wmofir:95
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    References listed on IDEAS

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    1. Fiva, Jon H. & Rønning, Marte, 2008. "The incentive effects of property taxation: Evidence from Norwegian school districts," Regional Science and Urban Economics, Elsevier, vol. 38(1), pages 49-62, January.
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    4. Wojciech Kopczuk, 2010. "Economics of estate taxation: a brief review of theory and evidence," NBER Working Papers 15741, National Bureau of Economic Research, Inc.
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    Full references (including those not matched with items on IDEAS)

    Citations

    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

    Citations

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    Cited by:

    1. 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.
    2. repec:taf:regstd:v:51:y:2017:i:4:p:507-522 is not listed on IDEAS
    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. Santiago Lago-Peñasa & Jorge Martinez-Vazquez & Agnese Sacchic, 2018. "Fiscal stability during the Great Recession: Putting decentralization design to the test," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1805, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    6. Tommaso Oliviero & Agnese Sacchi & Annalisa Scognamiglio & Alberto Zazzaro, 2016. "House Prices and Immovable Property Taxes: Evidence from OECD Countries," CSEF Working Papers 444, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 06 Oct 2016.

    More about this item

    Keywords

    Fiscal imbalance; Property tax; Sub-national governments; Tax decentralization;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • 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

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