| Autor: |
Peter Egger, Marko Köthenbürger, Michael Smart |
| Rok vydání: |
2007 |
| Předmět: |
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| Popis: |
The paper empirically analyzes the incentive effects of equalizing transfers on business tax policy by exploiting a natural experiment in the state of Lower Saxony which changed its equalization formula as of 1999. We resort to within-state and across-state difference-in-difference estimates to identify the reform effect on municipalities' business tax rates. Confirming the theoretical prediction, the reform had a significant impact on the municipalities’ tax policy in the four years after the reform with a "phasing out" of the effect starting in the fourth to fifth year. The finding is robust to various alternative specifications. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
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