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Assessing the effects of local taxation using microgeographic data

Duranton, Gilles and Gobillon, Laurent and Overman, Henry G. (2011) Assessing the effects of local taxation using microgeographic data. Economic Journal, 121 (555). pp. 1017-1046. ISSN 0013-0133

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Identification Number: 10.1111/j.1468-0297.2011.02439.x

Abstract

We study the impact of local taxation on the location and growth of firms. Our empirical methodology pairs establishments across jurisdictional boundaries to estimate the impact of taxation. Our approach improves on existing work as it corrects for unobserved establishment heterogeneity, for unobserved time-varying site-specific effects and for the endogeneity of local taxation. Applied to data for English manufacturing establishments, we find that local taxation has a negative impact on employment growth but no effect on entry.

Item Type: Article
Official URL: http://onlinelibrary.wiley.com/journal/10.1111/%28...
Additional Information: © 2011 The Authors
Subjects: H Social Sciences > HJ Public Finance
Sets: Departments > Geography and Environment
Research centres and groups > Spatial Economics Research Centre
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 12 Jan 2012 13:19
Last Modified: 02 Jun 2014 08:44
URI: http://eprints.lse.ac.uk/id/eprint/41367

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