The Library
Fiscal interactions among European countries
Tools
Redoano, Michela (2003) Fiscal interactions among European countries. Working Paper. University of Warwick, Department of Economics, Coventry.
|
PDF
WRAP_Redoano_twerp680a.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader Download (327Kb) |
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Abstract
In this paper we investigate whether there is empirical evidence that EU Countries set their public expenditure and their taxes interdependently. We use a panel of data across European countries, years and fiscal variables to estimated countries’ reactions functions. We find evidence of intedependences consistent with the literature on tax and yardistick competition.
| Item Type: | Working or Discussion Paper (Working Paper) |
|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HJ Public Finance |
| Divisions: | Faculty of Social Sciences > Economics |
| Library of Congress Subject Headings (LCSH): | Space in economics, Taxation -- Econometric models, International economic relations, Panel analysis, Europe -- Economic conditions |
| Series Name: | Warwick economic research papers |
| Publisher: | University of Warwick, Department of Economics |
| Place of Publication: | Coventry |
| Date: | 28 June 2003 |
| Number: | No.680 |
| Number of Pages: | 31 |
| Status: | Not Peer Reviewed |
| Access rights to Published version: | Open Access |
| References: | [1] Altshuler, R., Goodspeed, T.J., (2002), Follow a Leader? Evidence on European and U.S. Tax Competition, mimeo. [2] Anselin, L. (1988) Spatial Econometrics: Methods and Models, Kluwer Academic Publishers, Dordrecht. [3] Anselin, L., Bera, K., Florax, R., Yoon, M. (1996) ”Simple diagnostic tests for spatial dependence,” Regional Science and Urban Economics, 26, 77-104. [4] Baicker, K., (2001) ”The spillover effect of state spending”, NBER Working Paper 8383. [5] Besley, T., Case, A. (1995a) ”Incumbent behavior: vote seeking, tax setting and yardstick competition,” American Economic Review, 85, 25-45. [6] Besley, T., Case, A. (1995b) ”Does electoral accountability affect economic policy choices? Evidence from gubernatorial term limits,” Quarterly Journal of Economics ,110, 769-798. [7] Besley, T., Griffith R. , Klemm A. (2001) ”Empirical Evidence of Fiscal Interdependence in OECD Countries”, mimeo. [8] Besley, T., Smart, M. (2001) ”Globalization and Electoral Accountability,” unpublished paper. [9] Bivand, R., Szymanski, S. (1997) ”Spatial dependence through local yardstick competition: theory and testing,” Economics Letters, 55, 257-265. [10] Breton, A. (1998) Competitive Governments, Cambridge University Press, Cambridge. [11] Brett, C., Pinkse, J. (2000) ”The determinants of municipal tax rates in British Columbia,” Canadian Journal of Economics, 33, 695-714. [12] Brueckner, J. (1998) ”Testing for strategic interaction among local governments: the case of growth controls,” Journal of Urban Economics, 44, 438-467. [13] Brueckner, J., Saavedra, L. (2001) ”Do local governments engage in strategic property tax competition?” National Tax Journal, 54, 203-229. [14] Buettner, T. (2001) ”Local business taxation and competition for capital: the choice of tax rate,” Regional Science and Urban Economics, 31, 215-245. [15] Case, A. (1991) ”Spatial patterns in household demand”, Econometrica, 59, 4. [16] Case, A. (1993) ”Interstate tax competition after TRA86,” Journal of Policy Analysis and Management, 12, 136-148. [17] Case, A., Hines, J., Rosen, H. (1993) ”Budget spillovers and fiscal policy interdependence,” Journal of Public Economics, 52, 285-307. [18] Coate, S. and Morris, S. (1995) ”On the forms of transfers to special interests,” Journal of Political Economy, 105, 1210-1235. [19] Devereux, M., Lockwood, B., Redoano, M. (2002) ”Do Countries Compete over Corporate Tax Rates?”, Warwick Economic Research Paper no. 642. [20] Figlio, D., Kolpin, V., Reid, W. (1999) ”Do states play welfare games?” Journal of Urban Economics, 46, 437-454. [21] Heyndels, B., Vuchelen, J. (1998) ”Tax mimicking among Belgian municipalities,” National Tax Journal, 60, 89-101. [22] Kelejian, H., Robinson, D. (1993) ”A suggested method of estimation for spatial interdependent models with autocorrelated errors, and an application to a county expenditure model,” Papers in Regional Science, 72, 297-312. [23] Ladd, H. (1992) ”Mimicking of local tax burdens among neighboring counties,” Public Finance Quarterly, 20, 450-467. [24] Manski, C. (1993) ”Identification of Endogenous Social Effects: the Reflection Problem” Review of Economic Studies, 60, 531-542. [25] Revelli, F. (2001a) ”Local taxes, national politics and spatial interactions in English district election results,” European Journal of Political Economy (forthcoming). [26] Revelli, F. (2001b) ”Spatial patterns in local taxation: tax mimicking or error mimicking?” Applied Economics, 33, 1101-1107. [27] Saavedra, L., (2001) ”A model of welfare competition with evidence from AFDC,” Journal of Urban Economics, 47, 248-279. [28] Shroder, M. (1995) ”Games the states don’t play: welfare benefits and the theory of fiscal federalism,” The Review of Economics and Statistics, 77, 183-191. [29] A. Solè Ollè, (2001) ”Tax mimicking and electoral control: an empirical analysis of local tax setting in Spain”, Universitat del Barcelona, mimeo. [30] Tiebout, C. (1956) ”A pure theory of local expenditures,” Journal of Political Economy, 64, 416-424. [31] Wildasin, D. (1986) Urban Public Finance, Harwood Academic Publishers, New York. [32] Wilson, J. (1999) ”Theories of tax competition,” National Tax Journal, 53, 269-304. [33] Wooders, M., Zissimos, B. (2003), ”Hotelling Tax Competition”, Warwick Economic Research Paper no. 668. [34] Wrede, M. (2001) ”Yardstick competition to tame the Leviathan,” European Journal of Political Economy, 17, 705-721. |
| URI: | http://wrap.warwick.ac.uk/id/eprint/1510 |
Actions (login required)
![]() |
View Item |
Tools
Tools

