A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Testing for fiscal competition among French municipalities: Granger causality evidence in a dynamic panel data model
Abstract. The purpose of this article is to produce further empirical insights into fiscal competition among local governments within an original framework. Relying on Granger's methodology, we address the question of possible causality at municipal level, between local budget variables (public expenditure and taxes) and residential location patterns. Tests are performed on a sample of 27 French municipalities belonging to the same suburban area for the 1987–1996 period. We identify two different strategies. Some localities compete in the tax rate variable while others act on public expenditure. If we consider public investment spending and taxes results strongly reject the adaptive hypothesis and clearly support the idea of fiscal competition. If we retain operating expenditure results indicate that both behaviors are accepted.
Testing for fiscal competition among French municipalities: Granger causality evidence in a dynamic panel data model
Abstract. The purpose of this article is to produce further empirical insights into fiscal competition among local governments within an original framework. Relying on Granger's methodology, we address the question of possible causality at municipal level, between local budget variables (public expenditure and taxes) and residential location patterns. Tests are performed on a sample of 27 French municipalities belonging to the same suburban area for the 1987–1996 period. We identify two different strategies. Some localities compete in the tax rate variable while others act on public expenditure. If we consider public investment spending and taxes results strongly reject the adaptive hypothesis and clearly support the idea of fiscal competition. If we retain operating expenditure results indicate that both behaviors are accepted.
Testing for fiscal competition among French municipalities: Granger causality evidence in a dynamic panel data model
Binet, Marie-Estelle (author)
2003
Article (Journal)
English
BKL:
74.12
Stadtgeographie, Siedlungsgeographie
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