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The effect of tourism taxation: a synthetic control approach

Author

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  • B. Biagi
  • MG. Brandano
  • M. Pulina

Abstract

So far, the Synthetic Control Method (SCM) has not been employed for evaluating the impact of tourism taxation. A lack of research on this topic is possibly due to the fact that, for example, in many European municipalities a tourism tax has been levied only very recently. Hence, the objective of the present paper is to investigate the effects of a taxation intervention on tourism flows by using the SCM. This work presents a case study based on a panel of municipalities in Sardinia (Italy), for the time span 2006-2011. Results highlight that tourism taxation has affected domestic and international tourism flows in a different manner. Applications to other contexts would guide policy makers on the actual effects of tourism taxation and related sustainable local policies.

Suggested Citation

  • B. Biagi & MG. Brandano & M. Pulina, 2016. "The effect of tourism taxation: a synthetic control approach," Working Paper CRENoS 201609, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:201609
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    File URL: https://crenos.unica.it/crenos/node/6618
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    Keywords

    Synthetic control; tourism taxation; policy evaluation;
    All these keywords.

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