Tax interactions among Belgian municipalities: Do interregional differences matter?

Gérard, Marcel; Jayet, Hubert; Paty, Sonia

doi:10.1016/j.regsciurbeco.2010.03.010

Cited by 45 publications

(30 citation statements)

References 23 publications

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“…15 Previous work suggests significant spatial auto-correlation in the setting of local income and property tax rates in Flanders (e.g., Heyndels and Vuchelen, 1998;Richard et al, 2005;Van Parys and Verbeke, 2007;Gérard et al, 2010). Geys (2006) provides evidence of spatial auto-correlation in Flemish local government efficiency ratings (see Revelli and Tovmo, 2007, for a similar finding using Norwegian data).…”

Section: Inter-jurisdictional Dependencementioning

confidence: 87%

Economic and Political Foundations of Local Tax Structures: An Empirical Investigation of the Tax Mix of Flemish Municipalities

Geys

Revelli

2011

Environ Plann C Gov Policy

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Building on the revenue structure theory developed by Hettich and Winer (1984, 1988, 1999, this paper is the first to investigate the economic and political determinants of local tax mix choices. We thereby use panel data on 289 municipalities in the Flemish region of Belgium (period 1995Belgium (period -2002, where local governments enjoy extensive fiscal autonomy and have a wide choice of available tax instruments. Estimating a system of five reduced-form equations for the five central revenue sources (income, property, business, user fees and other own revenues), our results show that economics plays a significantly more important role than politics in shaping the local tax mix. Moreover, supporting theoretical predictions about marginal cost equalization across available tax instruments, absolute reliance on each revenue source increases as the overall revenue requirement gets larger (a 'scaleeffect').

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Section: Inter-jurisdictional Dependencementioning

confidence: 87%

Economic and Political Foundations of Local Tax Structures: An Empirical Investigation of the Tax Mix of Flemish Municipalities

Geys

Revelli

2011

Environ Plann C Gov Policy

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“…For instance, Elhorst (2010) employ spatial econometric techniques to focus on time-space models, but they only examine the process of economic growth at a single spatial scale. To our knowledge, this is the first study of regional economic growth exploring both time and different spatial scale dimensions in the context of spatial panel data models.1 See, for instance, Azzoni (2001), López-Bazo et al (2004), Gamboa (2010), Fischer et al (2009), Lesage and Fischer (2008), Jeanty et al (2010) Gérard et al (2010) and Brueckner (1998). 2 It is worth noting that there is growing empirical literature analyzing MAUP in several areas of urban and regional economics such as Yamamoto (2008), Briant et al (2010), Fingleton (2011) andMenon (2012).…”

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confidence: 99%

Evaluating multiple spatial dimensions of economic growth in Brazil using spatial panel data models

et al. 2015

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The goal of this paper is to evaluate the results of regional economic growth model estimations at multiple spatial scales using spatial panel data models. The spatial scales examined are minimum comparable areas, microregions, mesoregions and states between 1970 and 2000. Alternative spatial panel data models with fixed effects were systematically estimated across those spatial scales to demonstrate that the estimated coefficients change with the scale level. The results show that the conclusions obtained from growth regressions depend on the choice of spatial scale. First, the values of spatial spillover coefficients vary according to the spatial scale under analysis. In general, such coefficients are statistically significant at the MCA, microregional and mesoregional levels, however, at state level those coefficients are no longer statistically significant, suggesting that spatial spillovers are bounded in space. Moreover, the positive average-years-of-schooling direct effect coefficient increases as more aggregate spatial scales are used. Population density coefficients show that higher populated areas are harmful to economic growth, indicating that congestion effects are operating in all spatial scales, but their magnitudes vary across geographic scales. Finally, the club convergence hypothesis cannot be rejected suggesting that there are differences in the convergence processes between the north and south in Brazil. Furthermore, the paper discusses the potential theoretical reasons for different results found across estimations at different spatial scales. JEL Classification C23 · O18 · R11 MotivationThe goal of this paper was to evaluate the results of regional economic growth estimates at multiple spatial scales using alternative spatio-temporal models recently proposed in the spatial econometrics literature. During the last two decades, an increasing dissemination of spatial econometrics techniques has been observed among regional scientists, economists, and researchers in several fields (Anselin 1988;Lesage 1999;Conley 1999). The vast research of applied spatial econometrics on the interdependencies among spatial units and their effects on, among others, regional economic growth, trade flows, knowledge spillovers, migration, housing prices, tax interactions, and city's growth controls 1 is well known. However, this literature still lacks a better understanding of the potential reasons why models estimated at different geographic scales yield different results in the context of regional economic growth empirics. 2 Resende (2011) engages in an initial discussion on the determinants of Brazil's regional economic growth at a variety of geographic scales using a cross-sectional data set over the 1990s period. Resende (2013) improves this analysis by using standard panel data models across several spatial scales, but the process of economic growth in Brazil is only examined using non-spatial panel data models. This investigation refers back to the modifiable areal unit problem (MAUP), 3 but it s...

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“…A rich empirical literature documents the relevance of signi cant tax interaction (see, e.g. Ladd (1992), Büttner (2001, Bordignon, Cerniglia, and Revelli (2003), Gerard, Jayet, and Paty (2010), and Cassette, Porto, and Foremny (2012); for overviews see Brueckner (2003) and Allers and Elhorst (2005)). …”

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confidence: 99%

Race to the debt trap? — Spatial econometric evidence on debt in German municipalities

Borck

Fossen

Freier

et al. 2015

Regional Science and Urban Economics

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Tax interactions among Belgian municipalities: Do interregional differences matter?

Cited by 45 publications

References 23 publications

Economic and Political Foundations of Local Tax Structures: An Empirical Investigation of the Tax Mix of Flemish Municipalities

Economic and Political Foundations of Local Tax Structures: An Empirical Investigation of the Tax Mix of Flemish Municipalities

Evaluating multiple spatial dimensions of economic growth in Brazil using spatial panel data models

Race to the debt trap? — Spatial econometric evidence on debt in German municipalities

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