Janeba, Eckhard
Fiscal competition and public debt / Eckhard Janeba, Maximilian Todtenhaupt .-- , 2018
Disponible únicamente en formato PDF en el repositorio de la Biblioteca del IEF con el nombre: 0730-2018-168JAN.
Resumen.
Bibliografía.
This paper explores the implications of high indebtedness for strategic tax setting when capital markets are integrated. When public borrowing is constrained due to sovereign default or by a binding fiscal rule, a rise in a country's initial debt level lowers investment in public infrastructure and makes tax setting more aggressive in that jurisdiction, while the opposite occurs elsewhere. On net a jurisdiction with higher initial debt becomes a less attractive location. Our analysis is inspired by fiscal responses in severely hit countries after the economic and financial crisis which are consistent with the theoretical predictions. We find a similar pattern on the sub-national level using administrative data from the universe of German municipalities.
COMPETENCIA FISCAL NOCIVA
DEUDA PUBLICA
NEGOCIOS MERCANTILES
IMPUESTOS
Todtenhaupt, Maximilian
Journal of Public Economics 0047-2727 v. 168, December 2018, p. 47-61
Fiscal competition and public debt / Eckhard Janeba, Maximilian Todtenhaupt .-- , 2018
Disponible únicamente en formato PDF en el repositorio de la Biblioteca del IEF con el nombre: 0730-2018-168JAN.
Resumen.
Bibliografía.
This paper explores the implications of high indebtedness for strategic tax setting when capital markets are integrated. When public borrowing is constrained due to sovereign default or by a binding fiscal rule, a rise in a country's initial debt level lowers investment in public infrastructure and makes tax setting more aggressive in that jurisdiction, while the opposite occurs elsewhere. On net a jurisdiction with higher initial debt becomes a less attractive location. Our analysis is inspired by fiscal responses in severely hit countries after the economic and financial crisis which are consistent with the theoretical predictions. We find a similar pattern on the sub-national level using administrative data from the universe of German municipalities.
COMPETENCIA FISCAL NOCIVA
DEUDA PUBLICA
NEGOCIOS MERCANTILES
IMPUESTOS
Todtenhaupt, Maximilian
Journal of Public Economics 0047-2727 v. 168, December 2018, p. 47-61