Testing the taxmimicking versus expenditure spill-over hypotheses using English data

摘要: Spatial interaction among local governments in tax setting and public spending decisions is receiving increasing attention the applied economics literature. models rely on presence of an externality from budget making: traditional finance models, external effects originate either interjurisdictional resource flows due to competition for a mobile base, or expenditure spill-overs into neighbouring jurisdictions. However, recent political agency/yardstick literature has stressed role ‘informational’ externalities between jurisdictions, predicted mimicry at level. The actual relevance above hypotheses clearly needs be assessed empirically. In this paper, attempt made discriminating alternative sources fiscal interaction, by using data English municipal authorities' budgets. While both levels property rates ex...