Leaders, Followers, and Asymmetric Local Tax Policy Diffusion

Burge, Gregory S.; Rogers, Cynthia L.

doi:10.1111/jors.12242

Cited by 21 publications

(23 citation statements)

References 46 publications

(53 reference statements)

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“…These scholars focus on explaining the main characteristics of leaders in creating a better environment for their organizations (in our case, the LGUs). To have an impact on the development of their own region, leaders need to proactively interact with institutions and entrepreneurs, harmonize requests from many different interest groups and organizations and use their expertise in managing the resources (Beer & Clower, 2014; Burge & Rogers, 2016; Horlings & Sotarauta, 2012; Stimson, Stough, & Salazar, 2005). We constuct our forth hypothesis based on this branch of literature.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

The role of local leaders in regional development funding: Evidence from an elite survey

Merkaj

Lucchetti

Fiorillo

2020

Journal of Regional Science

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Many postsocialist countries are run by an elite with links to the socialist legacy and often share similar challenges and issues. We investigate formal and informal factors shaping the role of mayors in accessing regional development funds in Albania, a postsocialist country. With data from one of the largest elite (mayors) survey, we analyze both channels of influence of the mayors: the number of applications and the success rate. We find that mayors bring their communities more funds using formal leadership qualities that intensify the number of submissions. On the other hand, informal leadership remains important in explaining the success rate, as by using networking channels leaders enhance the probability to get financed. Political power is also decisive in the process.

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Section: Conceptual Frameworkmentioning

confidence: 99%

The role of local leaders in regional development funding: Evidence from an elite survey

Merkaj

Lucchetti

Fiorillo

2020

Journal of Regional Science

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“…Second, a few studies do explore tax competition at the border using panel data. Burge and Rogers (2016) consider the panel dynamics of tax competition for Oklahoma by developing an index to categorize leaders and followers over several decades in the local area tax competition. They find that leaders are less likely to react to changes in statutory tax rates made by other local jurisdictions.…”

Section: The Tax Competition Literaturementioning

confidence: 99%

“…To our knowledge, there is no publicly available data source for all county sales taxation rates in the United States over time. 6 The literature has responded by focusing on either single states or regions (Burge and Rogers 2016;Fox 1986;Luna, Bruce, and Hawkins 2007;Walsh and Jones 1988) or by focusing on one time period using cross-sectional analysis (Agrawal 2015). Our approach was to personally collect as many local (county, city, and township) sales taxation rates as possible from each state's respective revenue authority and from legislative documents.…”

Section: F Local and State Sales Taxation Datamentioning

confidence: 99%

Dynamic Sales Tax Competition: Evidence from Panel Data at the Border

Gentry¹,

Greenhalgh-Stanley

Rohlin

et al. 2020

Federal Reserve Bank of Boston Research Department Working Papers

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We examine both vertical and horizontal tax competition over time by studying the strategic response of county sales taxation to state sales taxes and to cross-border neighboring municipalities' combined (state and county) taxes. Using county and state sales tax data from 2003 through 2009, we employ both static and dynamic panel analysis as well as an instrumental variables approach in combination with a border analysis. Our results confirm the presence of tax competition in the cross section, as previous studies have found. Results from the fixedeffects and dynamic panel analysis also indicate the presence of vertical competition, though quite small, as counties are consistently responsive to changes in their own state sales tax level across all models and specifications. However, the panel findings suggest little to no horizontal tax competition. Following Parchet (2019), we address additional concerns about endogeneity by instrumenting the neighboring-county sales tax rate with the state-level sales tax rate of the neighboring state. Results from instrumental variables analysis reinforce the presence of a small vertical tax competition between local and state sales tax policies. Interestingly, our results, like those of Parchet (2019), indicate that cross-border local sales tax rates act as strategic substitutes.

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“…It is not difficult to imagine that similar strategic responses occur in the enactment of food sales tax policy. In addition, Burge and Rogers () find that there are distinct leaders and followers for local tax policy. They find that followers are actually more likely to raise taxes over their time period, while leaders are less likely to react to followers changes in taxes.…”

Section: Literature Reviewmentioning

confidence: 99%

Food sales taxes and employment

Greenhalgh-Stanley

Rohlin

Thompson

2018

Journal of Regional Science

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The analysis and conclusions set forth are those of the authors and do not indicate concurrence by other members of the research staff or the Federal Reserve Bank of Boston. AbstractWe use panel fixed effects estimation with a border approach creating cross-border county pairs to identify changes in food sales tax rates on employment, payroll, and hiring. Results suggest food sales taxes have a negligible effect on overall employment but adverse effects in the food and beverage stores industry. We find younger workers, who are more likely to work in the food and beverage industry, are more adversely affected when a neighboring state has preferential tax treatment for food. We also determine that omitting food sales tax rates when studying general sales tax effects on employment does not bias estimates.

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Leaders, Followers, and Asymmetric Local Tax Policy Diffusion

Cited by 21 publications

References 46 publications

The role of local leaders in regional development funding: Evidence from an elite survey

The role of local leaders in regional development funding: Evidence from an elite survey

Dynamic Sales Tax Competition: Evidence from Panel Data at the Border

Food sales taxes and employment

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