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Does fiscal cooperation increase local tax rates in urban areas

Author

Listed:
  • Sylvie Charlot

    (CESAER - Centre d'Economie et de Sociologie Rurales 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

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Virginie Piguet

    (CESAER - Centre d'Economie et de Sociologie Rurales 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)

Abstract

The main purpose of this paper is to assess the effects of fiscal cooperation on local taxation in a decentralized country using experience in French urban municipalities. A tax-setting model for local business tax is estimated, using spatial and panel econometric techniques, for the period 1993–2003. Controlling for population size, it is found that fiscal cooperation is likely to reduce tax competition and, as a consequence, to increase local business tax rates.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Sylvie Charlot & Sonia Paty & Virginie Piguet, 2012. "Does fiscal cooperation increase local tax rates in urban areas," Post-Print halshs-00752342, HAL.
  • Handle: RePEc:hal:journl:halshs-00752342
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    Cited by:

    1. Quentin Frère & Lionel Védrine, 2024. "Does decentralisation theorem shape intermunicipal cooperation?," Post-Print hal-04739942, HAL.
    2. Edoardo Di Porto & Angela Parenti & Sonia Paty, 2024. "Integration and voter participation: Evidence from local governments in France," Post-Print hal-04756472, HAL.
    3. Bischoff, Ivo & Das, Sourav & Kosfeld, Reinhold, 2025. "Does inter-municipal cooperation reduce the intensity of tax competition? Evidence on inter-local industrial parks in Germany," European Journal of Political Economy, Elsevier, vol. 87(C).
    4. Touria Jaaidane & Sophie Larribeau & Matthieu Leprince, 2024. "Inter-municipal cooperation and public employment: evidence from French municipalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(3), pages 987-1014, March.
    5. Enid Slack & Richard M. Bird, 2013. "Merging Municipalities: Is Bigger Better?," IMFG Papers 14, University of Toronto, Institute on Municipal Finance and Governance.
    6. Marco Di Cataldo & Licia Ferranna & Margherita Gerolimetto & Stefano Magrini, 2023. "Splitting Up or Dancing Together? Local Institutional Structure and the Performance of Urban Areas," Economic Geography, Taylor & Francis Journals, vol. 99(1), pages 81-110, January.
    7. Sonia Paty & Morgan Ubeda, 2021. "Inter-municipal cooperation and the provision of local public goods," Working Papers 2121, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    8. Clémence Tricaud, 2019. "Better alone? Evidence on the costs of intermunicipal cooperation," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2019-12-ccr, Condorcet Center for political Economy.
    9. Alexander Klein & Guy Tchuente, 2020. "Spatial Differencing for Sample Selection Models with Unobserved Heterogeneity," Papers 2009.06570, arXiv.org.
    10. David R. Agrawal & Marie-Laure Breuillé & Julie Le Gallo, 2025. "Tax Competition With Intermunicipal Cooperation," National Tax Journal, University of Chicago Press, vol. 78(1), pages 5-43.
    11. Edoardo Di Porto & Vincent Merlin & Sonia Paty, 2013. "Cooperation among local governments to deliver public services: a "structural" bivariate response model with fixed effects and endogenous covariate," Post-Print halshs-00861226, HAL.
    12. repec:hal:journl:hal-03380333 is not listed on IDEAS
    13. Banaszewska, Monika & Bischoff, Ivo & Bode, Eva & Chodakowska, Aneta, 2022. "Does inter-municipal cooperation help improve local economic performance? – Evidence from Poland," Regional Science and Urban Economics, Elsevier, vol. 92(C).
    14. Edoardo Di Porto & Angela Parenti & Sonia Paty, 2025. "The political cost of integration: A natural experiment on local governments," Working Papers hal-04926788, HAL.
    15. Zachary Spicer, 2022. "Organizing Canadian Local Government," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 1(Future of), May.

    More about this item

    Keywords

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    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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