Identifying Tax-Setting Responses From Local Fiscal Policy Programs
利用德国市政参与州债务减免项目带来的地方税收设定外生变化，研究地方政府在流动和固定税基上的税收政策互动，发现企业税和财产税均有显著反应，反应函数梯度在0.30至0.69之间。
This paper studies tax policy interaction among local governments for both mobile and immobile tax bases. We exploit exogenous changes in the local tax setting of German municipalities due to participation in state debt reduction programs to learn about the size, scope and nature of strategic interaction among local governments. Our results suggest strong and significant tax policy responses both in corporate as well as in property tax rates. Based on these results, the tax response function gradients are in the range of 0.30 to 0.69, depending on the tax instrument and state. Spatial, political, demographic, and administrative municipality characteristics all influence the size of the tax response.