Does inter-local cooperation reduce the intensity of tax competition? Evidence on inter-local industrial parks in Germany

Arbeitspapier

We ask whether inter-municipal cooperation serve as a platform by which municipalities coor-dinate tax policies and reduce the intensity of tax competition. In this paper, we focus on inter-municipal cooperation in form of inter-local industrial parks. We apply the generalized syn-thetic control method to analyze the causal impact of inter-local industrial parks on municipal tax-setting behavior using data on municipalities from four West-German states between 2000 and 2018. The analysis does not support the notion that inter-local industrial parks constitute a platform used for tax coordination.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: MAGKS Joint Discussion Paper Series in Economics ; No. 37-2021

Classification and Topics

• Classification: Wirtschaft ; Business Taxes and Subsidies including sales and value-added (VAT) ; Intergovernmental Relations; Federalism; Secession ; State and Local Taxation, Subsidies, and Revenue ; Regional Development Planning and Policy
• Subject: Inter-local industrial parks ; inter-municipal cooperation ; tax competition ; generalized synthetic control method ; Germany

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bischoff, Ivo ; Kosfeld, Reinhold
• Event: Veröffentlichung
• (who): Philipps-University Marburg, School of Business and Economics
• (where): Marburg
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/254232
• Last update: 10.03.2025, 11:46 AM CET