Dylan Jong (p), Philip McCann , Viktor Venhorst

Sonia Paty

Data from the Fiscally Standardized Cities (FISC) database of the Lincoln Institute of Land Policy is used to examine the effect of local public expenditures and revenues on local well-being. Following the work of Faggian et al. (2012), the ‘voting with your feet’ approach is used to determine the revealed preferences and to infer well-being from them. The revealed preferences are measured by population growth. The relationships will be analyzed using Generalized Method of Moments and Pooled Mean Group estimations.

Eduardo Haddad (p), Natalia Cotarelli, Thiago Simonato, Vinicius Vale, Jaqueline Visentin

Dylan Jong

The impact of the crisis in the Greek economy was not uniform among the regions, threatening socioeconomic cohesion. In this paper, we explore the concept of the income multiplier in a multi-regional setting, in the context of the Greek recession, showing empirical evidence for the increasing magnitude of the multiplier during the recession period. The main results reveal a complex system of interregional relations on some of whose structural characteristics the cyclical reaction paths of the regions depend. In this case, the use of fiscal instruments to stimulate local activity in the regions may bring about important implications for regional inequality in Greece.

Tidiane Ly , Sonia Paty (p)

Eduardo Haddad

This paper investigates the impact of tax base mobility on local taxation. We first develop a theoretical model in order to examine the connection between local business property taxation and tax base mobility within a metropolitan area. We find that decreasing capital intensity in the tax base increases the business property tax rates unambiguously. We then test this result using a French reform, which changes the composition of the main local business tax base in 2010. Estimations using Difference-in-Difference show that the reduction in the mobility of the tax base indeed results in higher business property tax rates. Housing tax rates were negatively affected by the reform.