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

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

JournalArticle (Originalarbeit in einer wissenschaftlichen Zeitschrift)

ID	1532953
Author(s)	Bruelhart, Marius; Jametti, Mario; Schmidheiny, Kurt
Author(s) at UniBasel	Schmidheiny, Kurt
Year	2012
Title	Do Agglomeration Economies Reduce the Sensitivity of Firm Location to Tax Differentials?
Journal	The economic journal
Volume	122
Number	563
Pages / Article-Number	1069-1093
Abstract	Recent theoretical work in economic geography has shown that agglomeration forces can mitigaterace-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 corporatetaxes deter firm births less in more spatially concentrated sectors. Firms in sectors with an agglomerationintensity in the top quintile are less than half as responsive to differences in corporate taxburdens 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 locationchoices.
Publisher	Blackwell
ISSN/ISBN	0013-0133
edoc-URL	http://edoc.unibas.ch/dok/A6070727
Full Text on edoc	No
Digital Object Identifier DOI	10.1111/j.1468-0297.2012.02511.x
ISI-Number	000308289800008
Document type (ISI)	Article

14/05/2024

Research Database / FORSCHUNGSDATENBANK