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Taxable Agglomeration Rent: Evidence From A Panel Data

  • Sylvie Charlot
  • Sonia Paty

The main purpose of this paper is to test the existence of a taxable agglomeration rent in the French local tax setting by taking account the tax interactions among the urban jurisdictions. After presenting a simple economic geography model with fiscal interactions, we estimate a model of tax setting for the local business tax using the econometrics techniques on panel data for 1993 to 2002. We observe that the relationship between tax rate and fiscal base gives presumption of the existence of a taxable agglomeration rent.

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Paper provided by INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux in its series INRA UMR CESAER Working Papers with number 2006/1.

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Length: 22
Date of creation: 15 Mar 2006
Date of revision:
Handle: RePEc:ceo:wpaper:20
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  1. Heyndels, Bruno & Vuchelen, Jef, 1998. "Tax Mimicking Among Belgian Municipalities," National Tax Journal, National Tax Association, vol. 51(n. 1), pages 89-101, March.
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  12. Rodney D. Ludema & Ian Wooton, 1998. "Economic Geography and the Fiscal Effects of Regional Integration," Working Papers 9809, Business School - Economics, University of Glasgow.
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  19. Buettner, Thiess, 1999. "Local Capital Income Taxation and Competition for Capital: The Choice of the Tax Rate," ERSA conference papers ersa99pa180, European Regional Science Association.
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  27. repec:att:wimass:9127 is not listed on IDEAS
  28. Masayoshi Hayashi & Robin Boadway, 2001. "An empirical analysis of intergovernmental tax interaction: the case of business income taxes in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 481-503, May.
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  30. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 531-42, July.
  31. Anne Case, 1993. "Interstate tax competition after TRA86," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(1), pages 136-148.
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