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Dynamique des interactions fiscales entre les communes belges. 1984-1997

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  • Jean-François Richard
  • Henry Tulkens
  • Magali Verdonck

Abstract

The authors test econometrically for the existence of tax interactions among Belgium?s local authorities (communes) for two types of taxes, the local component of personal income tax (additionnels à l?impôt sur le revenu des personnes physiques, IPP) and the property tax (précompte immobilier, PRI). A dynamic model is specified and estimated on the basis of panel data from the country?s 589 communes over a 15-year period. The results show a definite interaction among the communes in setting the rates of the two taxes. Further, their adjustments to changes in rates in other communes are slow: the gap between the actual rate and the rate desired because of the interactions is reduced annually by only 6% for the PRI and only 10% for the IPP.

Suggested Citation

  • Jean-François Richard & Henry Tulkens & Magali Verdonck, 2002. "Dynamique des interactions fiscales entre les communes belges. 1984-1997," Economie & Prévision, La Documentation Française, vol. 156(5), pages 1-14.
    • Handle: RePEc:cai:ecoldc:ecop_156_0001
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    1. Sylvie Charlot & Sonia Paty & Virginie Piguet, 2015. "Does Fiscal Cooperation Increase Local Tax Rates in Urban Areas?," Regional Studies, Taylor & Francis Journals, vol. 49(10), pages 1706-1721, October.
    2. Marcel Gérard & Hubert Jayet & Sonia Paty, 2009. "Tax Interactions among Belgian Municipalities: Does Language Matter?," CESifo Working Paper Series 2558, CESifo.
    3. Gérard, Marcel & Jayet, Hubert & Paty, Sonia, 2010. "Tax interactions among Belgian municipalities: Do interregional differences matter?," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 336-342, September.
    4. Thierry Madiès & Sonia Paty & Yvon Rocaboy, 2005. "Externalités fiscales horizontales et verticales. Où en est la théorie du fédéralisme financier ?," Revue d'économie politique, Dalloz, vol. 115(1), pages 17-63.
    5. Sylvie Charlot & Sonia Paty, 2006. "Taxable Agglomeration Rent: Evidence From A Panel Data," INRA UMR CESAER Working Papers 2006/1, INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux.

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