nach oben

International Tax and Public Finance

Erschienen in:

05.04.2018

Sub-metropolitan tax competition with household and capital mobility

verfasst von: Tidiane Ly

Erschienen in: International Tax and Public Finance | Ausgabe 5/2018

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This paper investigates the efficiency properties of tax competition between sub-metropolitan jurisdictions when capital, residents and workers are mobile, and both households and firms compete for local land markets. We analyze two decentralized equilibria: (1) With a local tax on residents and two separate local taxes on capital and land inputs, efficiency is achieved and the existence of a marginal fiscal cost due to residents’ mobility is revealed; (2) Combination of the taxes on capital and land inputs into a single business property tax leads local authorities to charge inefficiently high taxation on capital. We show that capital mobility induces a reduction in the business land taxation and local public inputs are used to offset the distorting effects of the property tax, accounting for the distorting impact of workers’ mobility.

Vorheriger Artikel Optimal family taxation and income inequality

Nächster Artikel A test of fiscal sustainability in the EU countries

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Nur mit Berechtigung zugänglich

See, e.g., Oates (1972), Wellisch (2006) and Wildasin (2013) for discussion of the advantages and disadvantages of decentralization of public policies.

Brülhart et al. (2015) provide strong empirical evidence of a high level of urban fragmentation within metropolitan areas (or “cities”). Atomisticity partly explains the lack of spatial interactions between municipalities found in, e.g., Lyytikäinen (2012), Isen (2014) and Baskaran (2014).

See Brülhart et al. (2015) for a comprehensive overview of this recent literature.

See, e.g., McKenzie (2013) for empirical evidence of the significance of county-to-county commuting in the USA.

While this paper is concerned with households’ perfect mobility, which may be relevant at the municipal level, other papers which investigate regional tax competition focus on imperfectly mobile households. Based on the model proposed by Mansoorian and Myers (1993), several authors, such as Burbidge and Myers (1994) and Wellisch (1994), study tax competition when individuals have different degrees of home attachment. Bucovetsky (2011) studies the situation where households face a fixed uniform mobility cost when moving from one jurisdiction to another.

Using Richter and Wellisch (1996)’s framework, Wellisch and Hulshorst (2000) analyze the distortions induced by the absence of either an undistortive tax on land or one of the direct taxes on households and firms. Wilson (1995) demonstrates that contrary to head taxes on households, labor taxes on individual labor supply induce under-provision of public goods.

Mieszkowski and Zodrow (1989) refer to this type of models as regional models, whereas they qualify as metropolitan models, those that study tax competition within a metropolitan area.

Gaigné et al. (2016) develop a urban economic model with asymmetric tax competition within metropolitan areas which also integrates both residential and labor mobility of households. Contrary to the present paper, in response to local policy changes residents are mobile within jurisdictions and not across them. Moreover, in Gaigné et al. (2016) public services are exogenous, while efficiency of endogenous local public service provision is central to our analysis. Thus, the results in Gaigné et al. (2016) should be regarded as complementary to those in this paper.

Business taxes are source-based since both local private inputs are partially owned by non-residents.

This corresponds to the first-best case in Wilson (1995). Similar outcomes are obtained by Wellisch and Hulshorst (2000) in Richter and Wellisch’s (1996) framework with several firms involving congestion but no capital. In their framework, due to firms’ congestion, the optimal poll business tax is a congestion fee.

Hettich and Winer (1988, 1999) characterize the optimal number of activities within a tax base, accounting for the administrative and political costs. Another rationale for a combined tax is that it might be difficult, in practice, to disentangle closely related tax bases. For instance, land improvements which constitute a type of capital are often integrated in the land tax base (Fisher 2015).

E.g., in the USA the legal restrictions in 40 out of the 50 states impose equal rates on real property (land and buildings) and personal property (equipment, machinery, inventories...). Source: the online database published by the Lincoln Institute of Land Policy (2014). In France, the taxe professionnelle (1975–2010) was another example of an identical statutory tax rate on capital and land.

When regional authorities are constrained to use a combined business property tax, Wilson (1995) shows that the distortions are balanced among all their tax instruments.

This provision rule echoes Matsumoto and Sugahara (2017). Their framework differs in several respects from the one proposed here, but the main difference is that we account for the existence of an untaxed mobile factor (labor).

Making the alternative assumption that \(F^i\) exhibits constant returns to scale in all factors including the public input would not affect significantly the analysis in this paper, since the number of firms is normalized to one (see Matsumoto 1998). The case of constant returns to scale in private factors is chosen for convenience and is usually considered as the empirically more relevant case (see footnote 56).

The usual assumption that factors are complements in production is reasonable given the aggregation of production.

For the sake of simplicity, we do not consider housing construction so that households and firms use land directly, and we assume that the individual demand for land is inelastic. In Hoyt (1991), Krelove (1993) and Wilson (1997), housing production uses mobile capital and fixed land, and the individual housing demand is elastic. Krelove shows that housing taxation entails usual distortions from optimal commodity tax theory. See Wilson (2003) for a survey of this literature.

See, e.g., Boadway (1980) for a similar specification of congestion. Empirical evidence of congestion is provided in Borcherding and Deacon (1972) and Bergstrom and Goodman (1973). See also McMillan et al. (1981) and Edwards (1990).

Note that there may be differences in local land endowments \(\mathcal {L}_i\). This paper is in fact not restricted to the study of symmetric equilibria across jurisdictions.

The integration of commuting costs into the model is discussed in Sect. 5.

Commuting is a noticeable departure from the WRW framework. In this literature where commuting is not allowed, the benefits of local policies capitalize into the wage rate which is therefore an endogenous jurisdiction-specific variable even if jurisdictions are atomistic. This explains the central role of local labor markets in this literature.

These taxes are source-based since capital and business land are partially owned by non-residents, as apparent in (5). The analysis in this paper would be strictly identical if \(\tau ^K_i\) and \(\tau ^L_i\) had been directly introduced into the individual’s budget constraint (5).

For reasons of space, the framework does not consider local taxes on labor inputs. However, as discussed below, the results can easily be extended to labor taxes.

This approach considers that the social planner cannot directly control migrations and is consistent with most studies with household mobility (e.g., Myers and Papageorgiou 1993; Richter and Wellisch 1996; Wellisch 2006; Wildasin 2013).

Note that the central planner does not need to use taxes in order to determine the Pareto-efficient allocation since its resources come from the direct control of firms.

The planner’s problem may well be solved by a so-called corner solution. That is, an allocation for which there is no production or no resident in some jurisdictions. We ignore this well-known problem in regional economics.

Appendix is available from the author upon request detailing the derivations of (13)–(17).

Alternatively, as shown by the land market clearing condition (3), condition (13) also characterizes the efficient location of business land.

Recall that the central planner does not levy taxes on residents. This explains why from its viewpoint, residents only entail costs that it balances among jurisdictions. However, local governments tax residents, so that in the decentralized equilibria analyzed in Sect. 4, residents entail not only costs but also benefits from the individual jurisdictions’ viewpoint.

This should be compared to the case of higher-level jurisdictions. In this case, conditions (13) and (15) are merged, reflecting the fact that residents are not only costly but also generate some local benefits through their marginal productivity \(F_W^i\) (e.g., Richter and Wellisch 1996).

Notice that the symmetric role of capital and labor in this economy allows one to deduce that any uniform level of local labor tax would ensure an efficient location of workers across jurisdictions. This requirement is met since the absence of a labor tax can be considered a uniform zero-tax on labor.

It may be inferred from Result 1 that the location-based taxes on residents alone do not sustain efficiency. Jurisdictions must use the source-based taxes on capital and business land to finance the public services and perform the efficient interjurisdictional transfers of resources. Indeed, as shown in, for example, Myers (1990), Hercowitz and Pines (1991) and Krelove (1992), in a federation with household mobility, interjurisdictional transfers of resources are necessary to sustain efficiency.

This contrasts with the literature in which an undistortive tax—usually a source-based tax on (fixed) business land—clears the local budget constraints and achieves resource transfers [see, e.g., Proposition 2.3 in Wellisch (2006)].

A given increase (decrease) in the individual’s income will, ceteris paribus, increase (reduce) the satisfaction of the residents living in the community, and especially since the equilibrium amount of the local public good is higher (lower) than private consumption—assuming diminishing marginal rate of substitution.

Additive separability is a widespread hypothesis in tax competition models. However, utility need not be linear in consumption, e.g., Assumption 1 holds also for \(U(x,g,R)=\varPhi [x+v(g,R)]\), whenever \(\varPhi \) is a bijective function, which is guaranteed by the usual assumptions: \(\varPhi \) is continuous and \(\varPhi '>0\).

The result stated in Lemma 1 requires a separation of individuals’ decisions as consumers and landowners. It is ensured by the neutrality hypothesis (Assumption 1) introduced in this paper. Other approaches are also possible. For example, Wilson (1995) and Wellisch and Hulshorst (2000) assume an Arrow–Debreu separation, while Henderson (1985) assumes that the local policy is conducted by absentee landowners. Alternatively, Hoyt (1991) postulates that the policy instruments are controlled by some immobile landowners who aim at maximizing their net wealth. In all these frameworks, the individual income y is treated as exogenous, while local authorities maximize the local land rent in order to maximize the income of landowners. Assumption 1 allows reconciliation of these two seamingly incompatible assumptions.

To be consistent with this alternative argument, immobile landowners can be introduced in the model. It can be shown that this would not affect any of the results derived in this paper provided that mobile and immobile residents have the same marginal willingness to pay for the local public good. See Sect. 5 for further discussion.

The detailed derivation of the necessary conditions (30) is provided in Appendix C.

Notice that (20) in Wilson (1995) and (16)–(19) in Wellisch and Hulshorst (2000) are qualitatively similar to (30). The differences in results between these contributions and ours are mainly due to the new location pattern entailed by the present framework (see Lemma 2 hereafter).

Derivation of the location responses requires that the local public good involves congestion, \(U^i_R<0\), as assumed in this paper (see footnote 87). This requirement must be met since all factors are variable; in the WRW model, deriving the location responses requires the presence of a fixed production factor.

The proof of this common result adapted to the present framework is available in an additional appendix, available from the author upon request.

See, e.g., Wilson (1995), Richter and Wellisch (1996) and Wellisch and Hulshorst (2000). Notice that Assumption 2 is a simplifying assumption which can be dropped without affecting any of the results of this paper. It would just require the interpretations to be adapted slightly, accounting for the fact that \(\tau ^L_i\) could be a subsidy.

The \(R_i/\mathcal {L}_i\) term in (35)—which can be written also as \(1-L_i/\mathcal {L}_i\)—simply recalls that from a budgetary perspective, broadening a tax base allows lowering of the related tax rate. However, this budgetary effect is of minor importance to this analysis.

Notice that \(\tau ^R_i\) and \(\tau ^L_i\) play a symmetric role from the local government’s viewpoint. Alternatively, \(\tau ^R_i\) can be used to clear the budget constraint and \(\tau ^L_i\) to internalize the net marginal fiscal cost of business land use \(\tau ^R_i-R_i|U_R^i|/U^i_x\). In this case, the level of \(\tau ^L_i\) is defined by (31) and the level of \(\tau ^R_i\) is obtained by inserting (31) into (35). This symmetry has important implications when the tax structure is constrained (Sect. 4.3).

Allowing workers to cause congestion would not change the results of this paper, provided that a local tax on labor is also introduced to allow local authorities to internalize this additional cost.

The conditions stated in Result 2 are essentially the same as the first-best results discussed in Wilson (1995) (section 3). However, Wilson’s results exclude two elements: (1) the marginal fiscal cost \(\tau ^L_i\) in (31); (2) condition (34) since his analysis focuses on local public goods. Result 2 can be seen also as an extension of the optimal behavioral rules in Wellisch and Hulshorst (2000) (section 2).

Household taxes also allow local governments to employ the business land tax so as to perform the efficient resource transfers (see footnote 32).

Wilson (1995) and Braid (1996) investigate a similar combined tax which they refer to as a “business property tax.” We retain this terminology in our paper and refer to the sum \(K_i+L_i\) as “business property.”

In the first-best setting (Sect. 4.2), only the allocation of local land between residents and firms was distorted by \(\tau ^L_i\). This distortion could be offset by the use of \(\tau ^R_i\). Here, \(\tau ^P_i\) also distorts the location of capital which leads to sub-efficiency. Indeed, \(\tau ^P_i\) does not enable local authorities to finance the provision of public services and achieve the resource transfers without distortion.

In this framework, a symmetric decentralized equilibrium is all the less likely since jurisdictions potentially have different initial land endowments \(\mathcal {L}_i\).

To our knowledge, the literature does not provide such a characterization of combined business property taxes. Most studies focus on the distortions caused by a tax structure incorporating a business property tax, without deriving its explicit level.

Since input prices ratios are not directly affected by changes in \(\tau ^R_i\), homogeneity of \(F^i\) implies that the relative demand for inputs \(K_i/L_i\) is unchanged.

In both cases \(\tau ^R_i=(C^i+L_i|U^i_R|/U^i_x)/(R_i+L_i)\).

See footnote 44.

In the WRW framework, each tax has its own role to play. Therefore, when the tax structure is constrained, each tax is used separately to alleviate directly or indirectly the lack of available instruments, while continuing to play its first-best role partially. See Wellisch (2006).

The literature on public inputs distinguishes two categories of public factors depending on the technology considered (Hillman 1978; McMillan 1979; Feehan 1989). This paper assumes “factor-augmenting” public inputs (i.e., \(F^i\) is CRS in private factors only), usually considered as the empirically more relevant case. It implies that public inputs only increase private factors’ productivity unlike “firm-augmenting” public inputs (i.e., \(F^i\) is CRS in all factors) which also increase the firms’ profit. Comparing the outcomes of these two specifications is beyond the scope of the present analysis. See Matsumoto (1998) for such a comparison when public inputs are financed by a capital tax.

Intuitively, condition (39) reads: The local public input is over(under)-provided if and only if it allows jurisdiction i to attract capital(land)-intensive firms.

Indeed, \(\tau ^P_i=0\) implies \(\varepsilon _i=0\) since \(\varepsilon _i=\frac{\tau ^P_i}{K_i+L_i}\frac{F^i_{WW}}{F^i_{WL}F^i_{KW}-F^i_{WW}F^i_{KL}}\) (see Appendix E).

See also Proposition 4 in Wellisch and Hulshorst (2000).

This result echoes the conclusions in Wellisch and Hulshorst (2000): When their tax instrument set is constrained, regional governments balance the distortions among their available instruments.

These considerations are not accounted for in Matsumoto and Sugahara (2017) since they do not consider an untaxed mobile factor, i.e., \(\left. (\partial W_i/\partial z_i)\right| _{(\bar{K}_i,\bar{L}_i)}=0\).

All the results discussed in this section are formally derived in an online appendix.

See Wilson (1999) for an extended survey of the capital tax competition literature. A noticeable exception is Lee (1997) in which capital is treated as imperfectly mobile.

Mansoorian and Myers (1993) assume that residents have attachment to their jurisdiction so that they face a psychic cost when moving to another jurisdiction.

Since the model does not include a spatial dimension, introducing commuting costs dependent on the distance between locations would require changes in the framework much beyond the scope of the paper. See, e.g., Braid (2000) for a spatial tax competition model with commuting costs dependent on distance.

The online appendix provides a graphical representation of the labor market equilibrium for these three categories of jurisdictions.

The case of this category of jurisdictions is close to the WRW framework since residents work where they live. However, regional models still differ from the present case since they ignore residential land.

The online appendix formally develops this extension. An alternative approach to account for different degrees of household mobility is taken in Mansoorian and Myers (1993), which considers a continuum of individual home attachment degrees. However, introducing a Hotelling space of preferences as in Mansoorian and Myers (1993) might be complex in the present framework with many atomistic jurisdictions.

For instance, all residents have the same MWP if utility is additively separable, such that \(U(x,g,R)=x+v(g,R)\).

Note that in this framework, richer households’ MWP for the local public good is at least as high as that of poorer households due to diminishing marginal rates of substitution. This theoretical ordering of MWPs is also the most relevant case in practice.

See Sect. 1 for examples of countries where such reforms have been implemented.

Otherwise, such measures could be too unpopular to be implemented. For instance, all French local jurisdictions have been quasi-perfectly compensated by national grants after the removal of capital from the business property tax base in 2010.

See Fisher (2015) for a classification of intergovernmental grants and a presentation of their various economic effects.

It is straightforward to see from (40) that such a grant scheme provides local governments with the incentives to set a zero business property tax, which removes the distortions from (37) to (39). In words, this grant scheme allows local governments to use their household tax as a congestion fee while being ensured that their public service provision is financed without relying on the business property tax.

See the online appendix for further details about these simulations.

Various justifications for higher grants to smaller and larger jurisdictions are discussed, respectively, in Kitchen (2007) and Slack (2007, 2010).

See, e.g., Deakin (1989), Downs (1991) and Quigley and Rosenthal (2005) for taxonomies of land use regulation policies.

See the online appendix for a formal development of this extension.

Then, the location response pattern of Lemma 2 is altered by the presence of land use restriction policy.

The intuition is the following. Consider a jurisdiction where households pay a lower land rent than firms. Then, the replacement of a business land unit by a new resident entails a decrease in the land rent generated in the jurisdiction. This loss must be internalized by households through the resident tax.

See Stafford and DeBoer (2014) for a detailed discussion of such reforms in the USA.

See Keen and Konrad (2013) for a review of tax competition models with dynamic aspects.

The proof follows the methodological approach in Wellisch (2006) (Chapter 2).

Note that, conditions (4), (13), (14) and (15) constitute \(4 \times (n-1)\) equations. Thus, if the problem is well-behaved, the 7n variables \(x_i\), \(g_i\), \(z_i\), \(R_i\), \(W_i\), \(K_i\) and \(L_i\) are uniquely determined by the 7n conditions (1)–(4) and (12)–(17).

In the following appendices, the jurisdiction index i is dropped for notational convenience.

Notice that from Schwarz’s theorem, \(\forall X,Y \in \lbrace W;K;L \rbrace , \ F_{XY}=F_{YX}\).

To solve (A.7) for \(W_t\), \(R_t\) and \(K_t\), the determinant |A| must be nonzero which is the case since \(U_R < 0\) due to congestion, and \(D>0\) (see below).

The derivations make extensive use of the following calculation rule for determinants: \( |c_1 \ldots c_j \ldots c_p|=\frac{1}{\alpha _j} |c_1 \ldots \underset{(column \ j)}{\sum _{k=1}^p \alpha _kc_k} \ldots c_p|\), where \(c_j\) is the \(j^{th}\) column vector. Since \(|^{t}{A}|=|A| \), the same rule applies to row operations.

To establish the signs of the location responses, recall that: \(U_x>0\), \(U_g>0\), \(U_R<0\), \(F_X>0\), \(F_{XX}<0\) and \(F_{XY}>0\) for all X and Y in \(\lbrace W;K;L;z \rbrace \).

Baskaran, T. (2014). Identifying local tax mimicking with administrative borders and a policy reform. Journal of Public Economics, 118, 41–51.CrossRef

Bergstrom, T. C., & Goodman, R. P. (1973). Private demands for public goods. The American Economic Review, 63(3), 280–296.

Boadway, R. (1980). A note on the market provision of club goods. Journal of Public Economics, 13(1), 131–137.CrossRef

Borcherding, T. E., & Deacon, R. T. (1972). The demand for the services of non-federal governments. The American Economic Review, 62(5), 891–901.

Braid, R. M. (1996). Symmetric tax competition with multiple jurisdictions in each metropolitan area. American Economic Review, 86(5), 1279–90.

Braid, R. M. (2000). A spatial model of tax competition with multiple tax instruments. Journal of Urban Economics, 47(1), 88–114.CrossRef

Brueckner, J. K. (2000). A Tiebout/tax-competition model. Journal of Public Economics, 77(2), 285–306.CrossRef

Brülhart, M., Bucovetsky, S., & Schmidheiny, K. (2015). Chapter 17—Taxes in cities. In J. V. H. Gilles Duranton & W. C. Strange (Eds.), Handbook of regional and urban economics, handbook of regional and urban economics (p. 1123). Amsterdam: Elsevier.

Bucovetsky, S. (1995). Rent seeking and tax competition. Journal of Public Economics, 58(3), 337–363.CrossRef

Bucovetsky, S. (2011). Incentive equivalence with fixed migration costs. Journal of Public Economics, 95(11), 1292–1301.CrossRef

Bucovetsky, S., & Wilson, J. D. (1991). Tax competition with two tax instruments. Regional Science and Urban Economics, 21(3), 333–350.CrossRef

Burbidge, J. B., & Myers, G. M. (1994). Population mobility and capital tax competition. Regional Science and Urban Economics, 24(4), 441–459.CrossRef

Deakin, E. (1989). Growth controls and growth management: A summary and review of empirical research. In D. J. Brower, D. R. Godschalk, & D. R. Porter (Eds.), Understanding growth management: Critical issues and a research agenda. Washington, DC: The Urban Land Institute.

Downs, A. (1991). The advisory commission on regulatory barriers to affordable housing: Its behavior and accomplishments. Housing Policy Debate, 2(4), 1095–1137.CrossRef

Edwards, J. H. (1990). Congestion function specification and the “publicness” of local public goods. Journal of Urban Economics, 27(1), 80–96.CrossRef

Epple, D., & Zelenitz, A. (1981). The implications of competition among jurisdictions: Does Tiebout need politics? Journal of Political Economy, 89(6), 1197–1217.CrossRef

Feehan, J. P. (1989). Pareto-efficiency with three varieties of public input. Public Finance, 44(2), 237–248.

Fisher, R. C. (2015). State and local public finance. New York: Routledge.

Gaigné, C., Riou, S., & Thisse, J. F. (2016). How to make the metropolitan area work? Neither big government, nor laissez-faire. Journal of Public Economics, 134, 100–113.CrossRef

Han, Y., Pieretti, P., & Zou, B. (2013). An extension of the home-attachment criteria under dynamic tax competition. Economics Letters, 121(3), 508–510.CrossRef

Henderson, J. V. (1985). The Tiebout model: Bring back the entrepreneurs. Journal of Political Economy, 93(2), 248–64.CrossRef

Hercowitz, Z., & Pines, D. (1991). Migration with fiscal externalities. Journal of Public Economics, 46(2), 163–180.CrossRef

Hettich, W., & Winer, S. L. (1988). Economic and political foundations of tax structure. The American Economic Review, 78, 701–712.

Hettich, W., & Winer, S. L. (1999). Democratic choice and taxation: A theoretical and empirical investigation. New York: Cambridge University.CrossRef

Hillman, A. L. (1978). Symmetries and asymmetries between public input and public good equilibria. Public Finance, 33(3), 269–279.

Hoyt, W. H. (1991). Competitive jurisdictions, congestion, and the Henry George Theorem: When should property be taxed instead of land? Regional Science and Urban Economics, 21(3), 351–370.CrossRef

Isen, A. (2014). Do local government fiscal spillovers exist? Evidence from counties, municipalities, and school districts. Journal of Public Economics, 110, 57–73.CrossRef

Janeba, E., & Osterloh, S. (2013). Tax and the city a theory of local tax competition. Journal of Public Economics, 106, 89–100.CrossRef

Keen, M., & Konrad, K. A. (2013). The theory of international tax competition and coordination. In Handbook of public economics (Vol. 5, pp. 257–328).

Kitchen, H. (2007). Grants to small urban governments. Intergovernmental Fiscal Transfers (pp. 319–338). Washington, DC: The World Bank.

Krelove, R. (1992). Efficient tax exporting. Canadian Journal of Economics, 25, 145–155.CrossRef

Krelove, R. (1993). The persistence and inefficiency of property tax finance of local public expenditures. Journal of Public Economics, 51(3), 415–435.CrossRef

Lee, K. (1997). Tax competition with imperfectly mobile capital. Journal of Urban Economics, 42(2), 222–242.CrossRef

Lincoln Institute of Land Policy. (2014). Significant features of the property tax. http://www.lincolninst.edu/subcenters/significant-features-property-tax/Report_Property_Tax_Classification.aspx. Accessed March, 2016.

Lyytikäinen, T. (2012). Tax competition among local governments: Evidence from a property tax reform in Finland. Journal of Public Economics, 96(7), 584–595.CrossRef

Mansoorian, A., & Myers, G. M. (1993). Attachment to home and efficient purchases of population in a fiscal externality economy. Journal of Public Economics, 52(1), 117–132.CrossRef

Matsumoto, M. (1998). A note on tax competition and public input provision. Regional Science and Urban Economics, 28(4), 465–473.CrossRef

Matsumoto, M., & Sugahara, K. (2017). A note on production taxation and public-input provision. The Annals of Regional Science, 59, 1–8.CrossRef

McKenzie, B. (2013). County-to-county commuting flows: 2006-10. US Census Bureau.

McLure, C. E. (1986). Tax competition: Is what’s good for the private goose also good for the public gander? National Tax Journal, 39(3), 341–348.

McMillan, J. (1979). A note on the economics of public intermediate goods. Public Finance, 34(2), 293–299.

McMillan, M. L., Wilson, W. R., & Arthur, L. M. (1981). The publicness of local public goods: Evidence from Ontario municipalities. Canadian Journal of Economics, 14, 596–608.CrossRef

Mieszkowski, P., & Zodrow, G. R. (1989). Taxation and the Tiebout model: The differential effects of head taxes, taxes on land rents, and property taxes. Journal of Economic Literature, 27(3), 1098–1146.

Myers, G. M. (1990). Optimality, free mobility, and the regional authority in a federation. Journal of Public Economics, 43(1), 107–121.CrossRef

Myers, G. M., & Papageorgiou, Y. Y. (1993). Fiscal inequivalence, incentive equivalence and pareto efficiency in a decentralized urban context. Journal of Urban Economics, 33(1), 29–47.CrossRef

Oates, W. E. (1972). Fiscal federalism. New York: Harcourt Brace Jovanovich.

Quigley, J. M., & Rosenthal, L. A. (2005). The effects of land use regulation on the price of housing: What do we know? What can we learn? Cityscape, 8, 69–137.

Richter, W. F., & Wellisch, D. (1996). The provision of local public goods and factors in the presence of firm and household mobility. Journal of Public Economics, 60(1), 73–93.CrossRef

Slack, E. (2007). Grants to large cities and metropolitan areas. In R. Boadway & A. A. Shah (Eds.), Intergovernmental transfers: Principles and practice (pp. 453–482). Washington DC: The World Bank.

Slack, E. (2010). Financing large cities and metropolitan areas (pp. 5–6). Toronto: Institute on Municipal Finance and Governance, Munk School, University of Toronto.

Stafford, J., & DeBoer, L. (2014). The personal property tax in Indiana: Its reduction or elimination is no simple task. Indiana Fiscal Policy Institute. Retrieved from http://www.indianafiscal.org/resources/Documents/REPORT_The+Personal+Property+Tax++in+Indiana_Indiana+Fiscal+Policy+Institute_020614.pdf.

Tiebout, C. M. (1956). A pure theory of local expenditures. Journal of Political Economy, 64, 416.CrossRef

Wellisch, D. (1994). Interregional spillovers in the presence of perfect and imperfect household mobility. Journal of Public Economics, 55(2), 167–184.CrossRef

Wellisch, D. (1995). Can household mobility solve basic environmental problems? International Tax and Public Finance, 2(2), 245–260.CrossRef

Wellisch, D. (2006). Theory of public finance in a Federal state. no. 9780521026871 in Cambridge books. Cambridge: Cambridge University Press.

Wellisch, D., & Hulshorst, J. (2000). A second-best theory of local government policy. International Tax and Public Finance, 7(1), 5–22.CrossRef

Wildasin, D. E. (1983). The welfare effects of intergovernmental grants in an economy with independent jurisdictions. Journal of Urban Economics, 13(2), 147–164.CrossRef

Wildasin, D. E. (1991). Income redistribution in a common labor market. The American Economic Review, 81, 757–774.

Wildasin, D. E. (2003). Fiscal competition in space and time. Journal of Public Economics, 87(11), 2571–2588.CrossRef

Wildasin, D. E. (2011). Fiscal competition for imperfectly-mobile labor and capital: A comparative dynamic analysis. Journal of Public Economics, 95(11), 1312–1321.CrossRef

Wildasin, D. (2013). Urban public finance. London: Routledge.

Wilson, J. D. (2003). Wilson, J. D.: The property tax: Competing views and a hybrid theory—Comments, University of Munich, Department of Economics. Chapters in Economics.

Wilson, J. D. (1984). The excise tax effects of the property tax. Journal of Public Economics, 24(3), 309–329.CrossRef

Wilson, J. D. (1986). A theory of interregional tax competition. Journal of Urban Economics, 19(3), 296–315.CrossRef

Wilson, J. D. (1995). Mobile labor, multiple tax instruments, and tax competition. Journal of Urban Economics, 38(3), 333–356.CrossRef

Wilson, J. D. (1997). Property taxation, congestion, and local public goods. Journal of Public Economics, 64(2), 207–217.CrossRef

Wilson, J. D. (1999). Theories of tax competition. National Tax Journal, 52(n. 2), 269–304.

Zodrow, G. R., & Mieszkowski, P. (1986). Pigou, Tiebout, property taxation, and the underprovision of local public goods. Journal of Urban Economics, 19(3), 356–370.CrossRef

Titel: Sub-metropolitan tax competition with household and capital mobility
verfasst von: Tidiane Ly
Publikationsdatum: 05.04.2018
Verlag: Springer US
Erschienen in: International Tax and Public Finance / Ausgabe 5/2018
Print ISSN: 0927-5940
Elektronische ISSN: 1573-6970
DOI: https://doi.org/10.1007/s10797-018-9490-7

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 5/2018

Optimal family taxation and income inequality

Tax treaties and foreign direct investment: a network approach

Optimal tax routing: network analysis of FDI diversion

Are global taxes feasible?

Distributional and revenue effects of a tax shift from labor to property

Is capital back? The role of land ownership and savings behavior