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.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Papers ; No. 21-14
- Classification
-
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
- Subject
-
local-option tax
yardstick competition
policy diffusion
fiscal stress
hazard model
- Event
-
Geistige Schöpfung
- (who)
-
Zhao, Bo
- Event
-
Veröffentlichung
- (who)
-
Federal Reserve Bank of Boston
- (where)
-
Boston, MA
- (when)
-
2021
- DOI
-
doi:10.29412/res.wp.2021.14
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Zhao, Bo
- Federal Reserve Bank of Boston
Time of origin
- 2021
Other Objects (12)
Designing state aid formulas: The case of a new formula for distributing municipal aid in Massachusetts
Estimating the cost function of connecticut public K-12 education: Implications for inequity and inadequacy in school spending
State disinvestment in higher education: The impact on public research universities' patent applications
The impact of weather on local government spending
Disinvesting in the future? A comprehensive examination of the effects of state appropriations for public higher education
How to design a state education aid formula that is equitable, adequate, and politically feasible: The case of Connecticut
From urban core to wealthy towns: Nonschool fiscal disparities across Connecticut municipalities
Saving for a rainy day: Estimating the appropriate size of U.S. state budget stabilization funds
The impact of a man-made disaster on consumer credit outcomes: Evidence from the 2018 Merrimack Valley natural gas explosions
Integrity of Newton’s cooling law based on thermal convection theory of heat transfer and entropy transfer
Measuring disparities in non-school costs and revenue capacity among Massachusetts cities and towns
Data access and regime competition: A case study of car data sharing in China
Designing state aid formulas: The case of a new formula for distributing municipal aid in Massachusetts
Estimating the cost function of connecticut public K-12 education: Implications for inequity and inadequacy in school spending
State disinvestment in higher education: The impact on public research universities' patent applications
The impact of weather on local government spending
Disinvesting in the future? A comprehensive examination of the effects of state appropriations for public higher education
How to design a state education aid formula that is equitable, adequate, and politically feasible: The case of Connecticut
From urban core to wealthy towns: Nonschool fiscal disparities across Connecticut municipalities
Saving for a rainy day: Estimating the appropriate size of U.S. state budget stabilization funds
The impact of a man-made disaster on consumer credit outcomes: Evidence from the 2018 Merrimack Valley natural gas explosions
Integrity of Newton’s cooling law based on thermal convection theory of heat transfer and entropy transfer
Measuring disparities in non-school costs and revenue capacity among Massachusetts cities and towns
Data access and regime competition: A case study of car data sharing in China
Designing state aid formulas: The case of a new formula for distributing municipal aid in Massachusetts
Estimating the cost function of connecticut public K-12 education: Implications for inequity and inadequacy in school spending
State disinvestment in higher education: The impact on public research universities' patent applications
The impact of weather on local government spending
Disinvesting in the future? A comprehensive examination of the effects of state appropriations for public higher education
How to design a state education aid formula that is equitable, adequate, and politically feasible: The case of Connecticut
From urban core to wealthy towns: Nonschool fiscal disparities across Connecticut municipalities
Saving for a rainy day: Estimating the appropriate size of U.S. state budget stabilization funds
The impact of a man-made disaster on consumer credit outcomes: Evidence from the 2018 Merrimack Valley natural gas explosions
Integrity of Newton’s cooling law based on thermal convection theory of heat transfer and entropy transfer
Measuring disparities in non-school costs and revenue capacity among Massachusetts cities and towns