Do Municipal Mergers Affect on Municipal Taxes?

This paper examines how changes to the municipal mergers affect municipal budget taxes. The main purpose of merging municipalities is to build more efficient and effective local governments with greater financial capacities by improving effectiveness of municipalities. The structure and financing of a tax change are critical to achieving regional development. I use a dif and dif econometric approach that enables us to distinguish treated and not-treated municipalities based on the mergers. The municipal mergers impact on municipal taxes for long term is uncertain, but many estimates suggest it is small