Business taxes and the electoral cycle

Riedel, Nadine; Foremny, Dirk

Business taxes and the electoral cycle

dc.contributor.author	Riedel, Nadine	de
dc.contributor.author	Foremny, Dirk	de
dc.date.accessioned	2024-04-08T08:46:35Z
dc.date.available	2024-04-08T08:46:35Z
dc.date.created	2012-02-14
dc.date.issued	2012
dc.description.abstract	The 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
dc.identifier.swb	358711606
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5562
dc.identifier.urn	urn:nbn:de:bsz:100-opus-6834
dc.language.iso	eng
dc.relation.ispartofseries	FZID discussion papers; 43
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject.ddc	330
dc.subject.gnd	Steuer	de
dc.subject.gnd	Finanzpolitik	de
dc.title	Business taxes and the electoral cycle	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	7	de
local.faculty.number	3	de
local.institute.number	795	de
local.institute.number	520	de
local.opus.number	683
local.series.issueNumber	43
local.series.title	FZID discussion papers
local.university	Universität Hohenheim	de
local.university.faculty	Landesanstalten	de
local.university.faculty	Faculty of Business, Economics and Social Sciences	en
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Forschungszentrum Innovation und Dienstleistung	de
local.university.institute	Institute for Economics	en
local.university.institute	Institut für Volkswirtschaftslehre	de

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