We investigate how lump-sum equalization transfers affect expenditures and taxes in the municipalities of the largest … instrumental variables. Findings suggest the existence of the "flypaper effect" - municipalities use transfers to increase …

municipalities of Saxony (eastern Germany) and North Rhine-Westphalia (western Germany). Findings from the panel data analysis … suggest the existence of the "flypaper effect" - municipalities use transfers to increase expenditures but do not reduce taxes … the two federal states despite the differences in the transfer dependency. Targeted support of eastern municipalities …

Germany since 1945. For non-agglomeration municipalities that lie on a convenient route between two larger cities the access … that highway access influences local tax setting in municipalities within 5 to 10 km road distance. Improved accessibility … increases property tax factors persistently by roughly 6 percentage points. Our effects are driven by peripheral municipalities …

affect the receipts of the municipalities and what tax burdens they will place on the various forms of business entity. Using … simulated. Taking account of the interest barrier, the result for municipalities is a drop in trade tax revenue. Incorporated …

We study the fiscal policy reactions of municipalities in the German state of North Rhine-Westphalia to an … municipalities. Using the quasi-random assignment, we examine whether these contributing municipalities adjust their tax setting … increase is even higher than the expansion of spending. Municipalities additionally refrain from increasing tax rates. The …

Generally, taxes are the most relevant source of revenue for German municipalities. In the period from 2004 to 2014 …, tax revenues were growing at remarkable rates. However, statistical analyses show that not all municipalities were … inequality remains static. The alarming fi nding is that intertemporal mobility among municipalities in the allocation of tax …