@techreport{Smart2007Raising,
abstract = {A simple theory suggests that a common form of federal horizontal equalization grants should cause subnational governments to levy higher tax rates, distorting local tax bases and so increasing federal transfers. To test this, I examine Canadian provincial tax policies in the 1972-2002 period. Consistent with the theory, provinces respond to expansions of equalization transfers by increasing their own tax rates. I estimate that on average tax rates in grant-receiving provinces were substantially and significantly higher as a consequence of the transfer formula.},
address = {M\"{u}nchen},
author = {Michael Smart},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H21; 330; L\"{a}ndersteuer; Steuertarif; Steuerpolitik; Finanzausgleich; Finanzf\"{o}deralismus; Sch\"{a}tzung; Kanada},
language = {eng},
number = {1926},
publisher = {CESifo},
title = {Raising taxes through equalization},
type = {CESifo working paper},
url = {http://hdl.handle.net/10419/25971},
year = {2007}
}
