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SPATIAL ADMINISTRATIVE STRUCTURE AND INTRA‐METROPOLITAN TAX COMPETITION
Author(s) -
Kauder Björn
Publication year - 2015
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12177
Subject(s) - urban agglomeration , metropolitan area , tax competition , competition (biology) , economic geography , economies of agglomeration , core (optical fiber) , business , administrative division , population , geography , economics , ad valorem tax , economic growth , double taxation , finance , demography , political science , ecology , materials science , archaeology , sociology , law , composite material , biology
I investigate whether the spatial administrative structure of agglomerations is associated with local business tax rates in core cities of agglomerations. Using data for German municipalities, I define agglomerations based on distances and based on cumulative population densities. The results show that the population share of the core in its agglomeration is positively associated and the number of surrounding municipalities is negatively associated with the tax rate of the core. When municipalities consolidate, the core has the opportunity to increase the tax rate.