This paper aims to test the existence of vertical interactions in terms of public spending between overlapping local jurisdictions in France using a data set of 110 French municipalities and their corresponding departments in 2001 and 2005. To do so, we consider that demand for municipal...

[eng] Optimal local Tax Rates and Gradual Adjustment Process: do Clubs of Towns Exist in France? . by Alain Guengant and Christophe Tavéra . This paper proposes an econometric study of the hypothesis of the gradual adjustment of tax rates voted in by town councils to the optimal rates wanted by...

[eng] Since 2004, French local governments have been running deficits and have moved deeper into debt, making it harder for general government to comply with the fiscal rules of the Maastricht and Amsterdam Treaties. The growing concern over the local governments’ fiscal sustainability calls...

[eng] Inter-municipal cooperation in France involved more than 80 % of municipalities and inhabitants in 2006. There is a wide choice of legal and financial options for cooperation but their impact on municipal spending behavior is controversial, hence this study. We provide two results. First,...

The reform of the local business tax system (creation of a regional economic contribution to replace the business tax) widely reshuffles the growth prospects of resources and budgets of regional authorities. Because of the substitution of investment by added value in the corporate tax base and...

[eng] Local taxes, central government taxes and financing of cities . The financing of cities changed in two main aspects since the devolution in 1982. First local tax revenues were reduced by the central government and local governments received instead grants. Second, cooperation between local...

[fre] Évaluation de la performance péréquatrice des concours financiers de l’État aux communes . . Les 36 600 communes françaises sont loin de pouvoir offrir aux résidents ou aux entreprises qu’elles accueillent le même niveau de services collectifs de proximité pour un effort fiscal...