Finanzarchiv, 2007-06, Vol.63 (2), p.264-277
2007
Volltextzugriff (PDF)
Details
- Autor(en) / Beteiligte
- Titel
- Fiscal Competition and the Composition of Public Spending: Theory and Evidence
- Ist Teil von
- Finanzarchiv, 2007-06, Vol.63 (2), p.264-277
- Ort / Verlag
- Mohr Siebeck
- Erscheinungsjahr
- 2007
- Quelle
- Alma/SFX Local Collection
- Beschreibungen/Notizen
- We consider fiscal competition between jurisdictions. Capital taxes are used to finance a public input and two public goods: one that benefits mobile skilled workers and one that benefits immobile unskilled workers. We derive the jurisdictions' reaction functions for different spending categories. We then estimate these reaction functions using data from German communities. Thereby we explicitly allow for a spatially lagged dependent variable and a possible spatial error dependence by applying a generalized spatial two-stage least-squares (GS2SLS) procedure. The results show that there is significant interaction between spending of neighboring counties in Germany.
- Sprache
- Englisch
- Identifikatoren
- ISSN: 0015-2218eISSN: 1614-0974DOI: 10.1628/001522107x220107Titel-ID: cdi_proquest_miscellaneous_36848281
- Format
- –
- Schlagworte
- Aggregate spending, capital-skill complementarity, Communities, Econometric models, Economic competition, Fiscal policy, Fiscal theory, Germany, Government spending, Income taxes, Jurisdiction, Local finance, Public expenditure, Public finance, Public goods, public spending, Real property taxes, Skilled labor, spatial econometrics, Spatial models, Tax competition, Taxes