Arbeitspapier

Local Property Tax Reform and Municipality Spending Efficiency

We investigate the effect on municipality spending efficiency of a local property tax reform, which reduced in 2008 the upper limit of the property tax. We compute municipality efficiency scores via data Envelopment Analysis (DEA) from 2005 to 2011, and then we rely in a panel data set to estimate how the tax reform affected the efficiency scores. Results of the analysis show that average input efficiency scores declined from 0.575 before the tax reform to 0.488 after the tax reform. This change was transversal to municipalities that reduced the municipal property tax (IMI) and to the ones that maintained the tax rate. In addition, the IMI reform is linked to higher efficiency scores. In other words, the reduction in efficiency ends up being smaller for the municipalities that decreased the IMI tax rate.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 9538

Klassifikation
Wirtschaft
Semiparametric and Nonparametric Methods: General
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Structure, Scope, and Performance of Government
Taxation and Subsidies: Efficiency; Optimal Taxation
National Government Expenditures and Related Policies: General
Thema
public spending efficiency
local government
data envelopment analysis (DEA)
local property tax reform

Ereignis
Geistige Schöpfung
(wer)
Afonso, António
Venâncio, Ana
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Afonso, António
  • Venâncio, Ana
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2022

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