2006
DOI: 10.1016/j.jpubeco.2005.09.002
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The dynamics of municipal fiscal adjustment

Abstract: Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in… Show more

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Cited by 112 publications
(115 citation statements)
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“…Indeed, our results suggest that most lost grant revenue would not be replaced -but rather results in reduced spending (in line with evidence from the US, Germany and Spain, see Buettner and Wildasin, 2006;Buettner, 2007;Solé-Ollé and Sorribas-Navarro, 2009). Yet, and unlike previous studies, our results additionally indicate that revenues raised to (partially) replace lost grant income are disproportionately extracted from the property tax base.…”
Section: Testing the Scale Effect Hypothesissupporting
confidence: 88%
“…Indeed, our results suggest that most lost grant revenue would not be replaced -but rather results in reduced spending (in line with evidence from the US, Germany and Spain, see Buettner and Wildasin, 2006;Buettner, 2007;Solé-Ollé and Sorribas-Navarro, 2009). Yet, and unlike previous studies, our results additionally indicate that revenues raised to (partially) replace lost grant income are disproportionately extracted from the property tax base.…”
Section: Testing the Scale Effect Hypothesissupporting
confidence: 88%
“…See Bucovetsky and Smart (2006), Buettner (2006 and2009), Buettner and Wildasin (2006), and Smart (2007) We exclude outliers from our analysis: 14 municipalities that had negative average project grants because they had to repay grants and four municipalities that had project grants of above 800 euros per capita. For one municipality with only 11 inhabitants the election results are not available due to election secrecy.…”
Section: The Grant Systemmentioning
confidence: 99%
“…These tax bases are quite inelastic 1 , which insures against large revenue shocks during downturns but also against The results of our analysis should show us whether these institutional differences in Spain are reflected in different patterns of adjustment to budget shocks to those described in these other countries. The methodology we adopt here closely mirrors that first developed by Bohn (1991) and applied by Buettner and Wildasin (2006) and Buettner (2007) shared on largely similar terms by the municipality -through the raising of taxes-and higher tiers of government -through the raising of grants.…”
Section: Introductionmentioning
confidence: 99%