Behavioural patterns of leaders versus followers in setting local sales tax policy

被引：0

作者：

Shon, Jongmin ^{[1
]}

Hou, Yilin ^{[2
]}

机构：

[1] Soongsil Univ, Sch Publ Adm, Seoul 06978, South Korea

[2] Syracuse Univ, Maxwell Sch Citizenship & Publ Affairs, Syracuse, NY USA

来源：

FISCAL STUDIES | 2024年

关键词：

asymmetric decision; local (option) sales tax; spillovers; tax competition; FISCAL INTERDEPENDENCE; COMPETITION; EXTERNALITIES; TAXATION; GOVERNMENTS; MODEL; PANEL;

D O I：

10.1111/1475-5890.12395

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Sales tax has been a popular revenue source for local governments in 38 US states. In this fiscal climate, both horizontal and vertical tax competition are frequently observed. Local governments are concerned about adverse impacts thereof on their revenue as mobile shoppers react to tax rate changes by purchasing in lower-tax jurisdictions. So far, few studies have accounted for potential endogeneity in the behavioural patterns of leaders versus followers in setting local sales tax policy. Using a 40-year panel dataset from Texas, this study identifies leader municipalities in changing sales tax rates and examines how municipalities asymmetrically respond to multi-tiered rate changes. The findings depict a crowding-out story in vertical tax competition and reveal crowding-in effects in horizontal competition, with leader municipalities immune to both effects.

引用

页数：16