Arbeitspapier
Opting in with the joneses: What affects the timing of municipal adoption of a local-option meals tax?
States use local-option taxes to promote local revenue diversification and improve local fiscal health. However, many sub-state governments wait a long time before adopting local-option taxes or do not adopt them at all, which seems puzzling or even irrational upon first glance. This paper uses the localoption meals tax in Massachusetts as a case study to examine the factors that affect the timing of local adoptions. It finds significant positive results for adoption by neighboring municipalities, which are robust to a variety of specifications, neighbor definitions, and weighting matrices. The adoption hazard also increases if a municipality faces greater fiscal stress, such as being more constrained by a property tax limitation or receiving a larger cut in state aid. In addition, the form of local government, size of the meals tax base, and ability to export the tax to non-residents are important factors.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Papers ; No. 21-14
- Klassifikation
-
Wirtschaft
Duration Analysis; Optimal Timing Strategies
State and Local Taxation, Subsidies, and Revenue
State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects
Intergovernmental Relations; Federalism; Secession
Regional Government Analysis: General
- Thema
-
local-option tax
yardstick competition
policy diffusion
fiscal stress
hazard model
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Zhao, Bo
- Ereignis
-
Veröffentlichung
- (wer)
-
Federal Reserve Bank of Boston
- (wo)
-
Boston, MA
- (wann)
-
2021
- DOI
-
doi:10.29412/res.wp.2021.14
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Zhao, Bo
- Federal Reserve Bank of Boston
Entstanden
- 2021
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