Setting House Taxes by Italian Municipalities: What the Data Say
This paper addresses the econometric issues related with spatial estimation in the context of the property tax set by Italian municipalities in 1993-2001. Using a comprehensive dataset of Italian cities, the paper finds that there are no significant differences in tax rates set by municipalities.
Key words: Local property tax; Strategic interactions among governments; Yardstick competition; Spatial auto-correlation.
KeywordsReaction Function Strategic Interaction Term Limit Yardstick Competition Fiscal Variable
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