Assessing the effects of local taxation using microgeographic data

Duranton, Gilles, Gobillon, Laurent and Overman, Henry G. ORCID: 0000-0002-3525-7629 (2006) Assessing the effects of local taxation using microgeographic data. CEP Discussion Paper (748). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 0753020548

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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:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2006 The Authors
Divisions:	Centre for Economic Performance Geography & Environment
Subjects:	H Social Sciences > HJ Public Finance
JEL classification:	H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H71 - State and Local Taxation, Subsidies, and Revenue H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H22 - Incidence R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R38 - Government Policies; Regulatory Policies
Date Deposited:	23 Jul 2008 08:45
Last Modified:	13 Sep 2024 19:59
URI:	http://eprints.lse.ac.uk/id/eprint/19840

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