@techreport{Egger2007fiscal,
abstract = {The paper empirically analyzes the incentive effects of equalizing transfers on business tax policy by exploiting a natural experiment in the state of Lower Saxony which changed its equalization formula as of 1999. We resort to within-state and across-state difference-indifference estimates to identify the reform effect on municipalities' business tax rates. Confirming the theoretical prediction, the reform had a significant impact on the municipalities tax policy in the four years after the reform with a phasing out of the effect starting in the fourth to fifth year. The finding is robust to various alternative specifications.},
address = {M\"{u}nchen},
author = {Peter Egger and Marko Koethenbuerger and Michael Smart},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H71; H25; 330; Kommunaler Finanzausgleich; Gewerbesteuer; Steuerwettbewerb; Gemeindefinanzen; Sch\"{a}tzung; Niedersachsen; Deutschland},
language = {eng},
number = {1955},
publisher = {CESifo},
title = {Do fiscal transfers alleviate business tax competition?: evidence from Germany},
type = {CESifo working paper},
url = {http://hdl.handle.net/10419/26000},
year = {2007}
}
