Determinants of local tax rates in Flemish municipalities
- Author
- Stijn Goeminne (UGent) and Carine Smolders (UGent)
- Organization
- Abstract
- Literature describes different theories on tax rate determinants individually. This paper tries to analyse the joint impact of different tax rate determinants on the local income and property tax rate in Flemish municipalities following the approach to analyze time-series cross-section data proposed by Beck & Katz (1995). Ordinary least squares (OLS) regressions with panel-corrected standard errors (PCSE) are used and show that the time to elections for both rates is decisive, while this is not true for the level of the tax base. Government participation of individual parties has an impact on fiscal policy and leads to higher tax rates with leftist parties. Political fragmentation variables seem to play a more decisive role in determining the income tax rate, as well as interaction effects with neighbouring municipalities. Our model does not reveal fiscal illusion effects.
- Keywords
- political budget cycle, tax illusion, tax competition, tax mimicking, government fragmentation, tax rate, partisan politics
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Citation
Please use this url to cite or link to this publication: http://hdl.handle.net/1854/LU-888838
- MLA
- Goeminne, Stijn, and Carine Smolders. “Determinants of Local Tax Rates in Flemish Municipalities.” WZB Economics and Politics Seminar Series, Papers, 2007.
- APA
- Goeminne, S., & Smolders, C. (2007). Determinants of local tax rates in Flemish municipalities. WZB Economics and Politics Seminar Series, Papers. Presented at the WZB Economics and Politics Seminar Series, Berlin, Germany.
- Chicago author-date
- Goeminne, Stijn, and Carine Smolders. 2007. “Determinants of Local Tax Rates in Flemish Municipalities.” In WZB Economics and Politics Seminar Series, Papers.
- Chicago author-date (all authors)
- Goeminne, Stijn, and Carine Smolders. 2007. “Determinants of Local Tax Rates in Flemish Municipalities.” In WZB Economics and Politics Seminar Series, Papers.
- Vancouver
- 1.Goeminne S, Smolders C. Determinants of local tax rates in Flemish municipalities. In: WZB Economics and Politics Seminar Series, Papers. 2007.
- IEEE
- [1]S. Goeminne and C. Smolders, “Determinants of local tax rates in Flemish municipalities,” in WZB Economics and Politics Seminar Series, Papers, Berlin, Germany, 2007.
@inproceedings{888838,
abstract = {{Literature describes different theories on tax rate determinants individually. This paper tries to analyse the joint impact of different tax rate determinants on the local income and property tax rate in Flemish municipalities following the approach to analyze time-series cross-section data proposed by Beck & Katz (1995). Ordinary least squares (OLS) regressions with panel-corrected standard errors (PCSE) are used and show that the time to elections for both rates is decisive, while this is not true for the level of the tax base. Government participation of individual parties has an impact on fiscal policy and leads to higher tax rates with leftist parties. Political fragmentation variables seem to play a more decisive role in determining the income tax rate, as well as interaction effects with neighbouring municipalities. Our model does not reveal fiscal illusion effects.}},
author = {{Goeminne, Stijn and Smolders, Carine}},
booktitle = {{WZB Economics and Politics Seminar Series, Papers}},
keywords = {{political budget cycle,tax illusion,tax competition,tax mimicking,government fragmentation,tax rate,partisan politics}},
language = {{eng}},
location = {{Berlin, Germany}},
pages = {{28}},
title = {{Determinants of local tax rates in Flemish municipalities}},
year = {{2007}},
}