Do Agglomeration Economies Reduce the Sensitivity of Firm Location to Tax Differentials?

Détails

ID Serval
serval:BIB_85B3439BDCDD
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
Do Agglomeration Economies Reduce the Sensitivity of Firm Location to Tax Differentials?
Périodique
The Economic Journal
Auteur⸱e⸱s
Brülhart M., Jametti M., Schmidheiny K.
ISSN
1468-0297 (Online)
Statut éditorial
Publié
Date de publication
09/2012
Peer-reviewed
Oui
Volume
122
Numéro
563
Pages
1069-1093
Langue
anglais
Résumé
Recent theoretical work in economic geography has shown that agglomeration forces can mitigate 'race-to-the-bottom' tax competition, by partly or fully offsetting firms' sensitivity to tax differentials. We test this proposition using data on firm births across Swiss municipalities. We find that corporate taxes deter firm births less in more spatially concentrated sectors. Firms in sectors with an agglomeration intensity in the top quintile are less than half as responsive to differences in corporate tax burdens as firms in sectors with an agglomeration intensity in the bottom quintile. Hence, agglomeration economies do appear to attenuate the impact of tax differentials on firms' location choices.
Web of science
Création de la notice
22/09/2011 18:15
Dernière modification de la notice
20/08/2019 14:45
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