This paper analyses the impact of terrorism on tax enforcement policies by focusing on the case of the Basque Country. The presence of externalities in tax administration attributable to the costs of terrorism is investigated by undertaking a theoretical analysis. The findings of this are tested...

Tax auditing parameters have been largely overlooked by the literature as policy-making instruments of any relevance; however, enforcement strategies are critical elements of the tax burden. In this paper we show that, in a federal framework, tax auditing policies can serve as additional tools for...

This paper analyses the impact of terrorism on tax enforcement policies by focusing on the case of the Basque Country. The presence of externalities in tax administration attributable to the costs of terrorism is investigated by undertaking a theoretical analysis. The findings of this are tested...

The literature on horizontal tax interdependence pays limited attention to interactions in administrative policies, although they can play a large role in determining the amount of tax revenues collected. We investigate the incentives for sub-central tax authority cooperation in a decentralized...

The purpose of this paper is to analyze the effect of inter-municipal cooperation on local taxation. Municipalities that join/create an inter-municipal jurisdiction choose between three tax regimes, which may induce both horizontal and vertical tax externalities. Using the differences in...

One challenge states face in designing an income tax system is deciding how to treat non-resident earners. Numerous states have entered into reciprocity agreements with other states that exclude non-residents’ income from the tax base. These agreements provide a unique opportunity to explore...

We examine the economic and political determinants of decisions taken by local governments regarding the amount of new land to be assigned for development. The analysis draws on a massive database, which includes more than 2,000 Spanish municipalities during the 1999-2003 term-of-office. The...

The democratic Constitution of 1978 set up a decentralised state in Spain. Since then, the Autonomous Communities (intermediate level of government) have strongly increased their role and currently represent around 25-30% of total public expenditure. Thus, financing autonomous government has...

This paper analyses how the existence of unemployment affects the conventional approach to vertical externalities. We discuss the optimality rule for the provision of public inputs both in an unitary and a federal country. Our findings show that decentralizing the spending responsability on...

Despite interest in the impact of land use regulations on housing construction and housing prices, little is known about the drivers of these policies. The conventional wisdom holds that homeowners have an influence on restrictive local zoning. In this paper, we contend that the party...