Local Tax Determinants an Unbalanced Panel Data Analysis: Evidence in Moroccan Municipalities

Abstract

This research identifies the factors influencing local taxation across eight municipalities in Morocco using an unbalanced panel data set. This study is based on two econometric models: random and fixed effects models and examines the effects of various factors such as the professional tax (PT), the housing tax (HT), the tax on municipal services (MST), the population (Pop), the density (Density) and other tax and fees (OTFs) on the evolution of local tax. The findings underscore the importance of considering not only central government factors but also local dynamics to understand and predict the evolution of local tax revenue.