Assessing the effects of local taxation using microgeographic data
We study the impact of local taxation on the location and growth of firms. Our empirical methodology pairs establishments across jurisdictional boundaries to estimate the impact of taxation. Our approach improves on existing work as it corrects for unobserved establishment heterogeneity, for unobserved time-varying site-specific effects and for the endogeneity of local taxation. Applied to data for English manufacturing establishments, we find that local taxation has a negative impact on employment growth but no effect on entry.
|Date of creation:||Sep 2011|
|Publication status:||Published in Economic Journal, September, 2011, 121(555), pp. 1017-1046. ISSN: 0013-0133|
|Contact details of provider:|| Postal: LSE Library Portugal Street London, WC2A 2HD, U.K.|
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Web page: http://www.lse.ac.uk/
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