Date of this Version
The Economic Journal
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.
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.
local taxation, spatial differencing, borders
Duranton, G., Gobillon, L., & Overman, H. G. (2011). Assessing the Effects of Local Taxation Using Microgeographic Data. The Economic Journal, 121 (555), 1017-1046. http://dx.doi.org/10.1111/j.1468-0297.2011.02439.x
Date Posted: 27 November 2017
This document has been peer reviewed.