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Do agglomeration forces strengthen tax interactions?

Listed author(s):
  • Sylvie Charlot

    (CESAER - Centre d'Economie et Sociologie appliquées à l'Agriculture et aux Espaces Ruraux - INRA - Institut National de la Recherche Agronomique - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement)

  • Sonia Paty

    ()

    (CREM - Centre de Recherche en Economie et Management - UNICAEN - Université Caen Normandie - UR1 - Université de Rennes 1 - CNRS - Centre National de la Recherche Scientifique, EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Sciences et Technologies - Université de Lille, Sciences Humaines et Sociales - PRES Université Lille Nord de France - Université de Lille, Droit et Santé)

The main purpose of this paper is to assess the existence of tax interdependencies among French local tax setting by taking into account the agglomeration forces. A model of tax setting for the local business tax is estimated using spatial econometrics techniques for 2002. First, it is shown that the mimicking behaviour between jurisdictions is not more intense in denser areas—in population or economic activity terms—suggesting that tax competition is not stronger as agglomeration increases. Secondly, a positive relationship is observed between tax rate and capital stock only for urban jurisdictions, suggesting a ‘taxable agglomeration rent', as highlighted by new economic geography models.

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Paper provided by HAL in its series Post-Print with number halshs-00545121.

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Date of creation: 2010
Publication status: Published in Urban Studies, SAGE Publications, 2010, 47 (5), pp.1099-1116
Handle: RePEc:hal:journl:halshs-00545121
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00545121
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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