EconStor >
Universität Hohenheim >
Forschungszentrum Innovation und Dienstleistung (FZID), Universität Hohenheim >
FZID Discussion Papers, Universität Hohenheim >

Please use this identifier to cite or link to this item:

Full metadata record

DC FieldValueLanguage
dc.contributor.authorForemny, Dirken_US
dc.contributor.authorRiedel, Nadineen_US
dc.description.abstractThe purpose of this paper is to assess whether politicians manipulate the timing of tax rate changes in a strategic way to maximize reelection prospects. To do so, we exploit the German local business tax as a testing ground which is set autonomously by German municipalities. As election dates vary across local councils, the data allows us to disentangle effects related to the timing of elections from common trends. Using a rich panel data-set for German municipalities, we assess the impact of elections on local business tax choices. The findings support the notion of a political cycle in tax setting behavior as the growth rate of the local business tax is significantly reduced in the election year and the year prior to the election, while it jumps up in the year after the election. This pattern turns out to be robust against a number of sensitivity checks.en_US
dc.publisherUniv. Hohenheim, Forschungszentrum Innovation und Dienstleistung Stuttgarten_US
dc.relation.ispartofseriesFZID discussion papers 43-2012en_US
dc.subject.keywordlocal business tax choiceen_US
dc.subject.keywordpolitical economyen_US
dc.subject.keywordelection cycleen_US
dc.titleBusiness taxes and the electoral cycleen_US
dc.typeWorking Paperen_US
Appears in Collections:FZID Discussion Papers, Universität Hohenheim

Files in This Item:
File Description SizeFormat
685260577.pdf2.88 MBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.