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.
Keywords
local taxation, spatial differencing, borders
Recommended Citation
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.
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.