Do fiscal transfers alleviate business tax competition?: evidence from Germany

Arbeitspapier

The paper empirically analyzes the incentive effects of equalizing transfers on business tax policy by exploiting a natural experiment in the state of Lower Saxony which changed its equalization formula as of 1999. We resort to within-state and across-state difference-indifference estimates to identify the reform effect on municipalities' business tax rates. Confirming the theoretical prediction, the reform had a significant impact on the municipalities' tax policy in the four years after the reform with a phasing out of the effect starting in the fourth to fifth year. The finding is robust to various alternative specifications.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 1955

Klassifikation und Themen

• Klassifikation: Wirtschaft ; State and Local Taxation, Subsidies, and Revenue ; Business Taxes and Subsidies including sales and value-added (VAT)
• Thema: Kommunaler Finanzausgleich ; Gewerbesteuer ; Steuerwettbewerb ; Gemeindefinanzen ; Schätzung ; Niedersachsen ; Deutschland

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Egger, Peter ; Koethenbuerger, Marko ; Smart, Michael
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2007

Weitere Informationen

• Handle: http://hdl.handle.net/10419/26000
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ