Real Estate Papers

Document Type

Journal Article

Date of this Version

9-2011

Publication Source

The Economic Journal

Volume

121

Issue

555

Start Page

1017

Last Page

1046

DOI

10.1111/j.1468-0297.2011.02439.x

Abstract

We study the impact of local taxation on the location and growth of firms. Our empirical methodology pairs establishments across jurisdictional boundaries to estimate the impact of taxation. Our approach improves on existing work as it corrects for unobserved establishment heterogeneity, for unobserved time-varying site-specific effects and for the endogeneity of local taxation. Applied to data for English manufacturing establishments, we find that local taxation has a negative impact on employment growth but no effect on entry.

Copyright/Permission Statement

This is the peer reviewed version of the following article: Duranton, G., Gobillon, L. and Overman, H. G. (2011), Assessing the Effects of Local Taxation using Microgeographic Data. The Economic Journal, 121: 1017–1046., which has been published in final form at doi: 10.1111/j.1468-0297.2011.02439.x. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving http://olabout.wiley.com/WileyCDA/Section/id-820227.html#terms.

Comments

At the time of publication, author Gilles Duranton was affiliated with the University of Toronto. Currently, he is a faculty member at the Real Estate Department at the University of Pennsylvania.

Keywords

local taxation, spatial differencing, borders

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Date Posted: 27 November 2017

This document has been peer reviewed.