DO AGGLOMERATION ECONOMIES REDUCE THE SENSITIVITY OF FIRM LOCATION TO TAX DIFFERENTIALS?

Recent theoretical work in economic geography has shown that agglomeration forces can mitigate 'race-to-the-bottom' tax competition, by partly or fully offsetting firms' sensitivity to tax differentials. We test this proposition using data on firm births across Swiss municipalities. W...

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Bibliographic details
Volume: 122
Main Author: Marius Brülhart
Mario Jametti
Kurt Schmidheiny
Format: Journal Article
Language: English
Zielgruppe: Trade
Academic
Place of publication: Oxford, UK Wiley-Blackwell 01.09.2012
Blackwell Publishing Ltd
WILEY-BLACKWELL
Wiley Subscription Services, Inc
published in: The Economic journal (London) Vol. 122; no. 563; pp. 1069 - 1093
ORCID: 0000-0001-7637-7451
Data of publication: 20120901
ISSN: 0013-0133
1468-0297
EISSN: 1468-0297
Discipline: Economics
Bibliography: mario.jametti@usi.ch
Correspondence regarding this article may be sent to: Marius Brülhart, Département d’économétrie et économie politique, Ecole des HEC, Université de Lausanne, 1015 Lausanne, Switzerland, email
Kurt Schmidheiny, Universität Basel, Wirtschaftswissenschaftliche Fakultät, Peter Merian‐Weg 6, 4002 Basel, Switzerland, email
We thank Jörn‐Steffen Pischke (the editor) for very helpful comments. We have also benefited from suggestions by Richard Baldwin, Antonio Ciccone, Gilles Duranton, Diego Puga, Helen Simpson, Albert Solé‐Ollé, Dan Trefler, Federico Trionfetti, Jean‐François Wen and seminar participants at the Universities of Barcelona, Dijon, Geneva (Graduate Institute of International Studies), IFS, KU Leuven, the London School of Economics, Madrid (Complutense), Nottingham, Pompeu Fabra, St. Gallen, Strathclyde, Toronto, Vienna (IHS), Warwick (IIPF) and York. Jean‐François Fracheboud and Andrea Grossi at the Swiss Federal Statistical Office have generously facilitated our access to the data. Financial support from the Swiss National Science Foundation (grants CRSI11‐130648, PBLA1‐106054, PA001‐105026 and NCCR Trade Regulation), from the EU's Sixth Framework Programme (‘Micro‐Dyn’ project), from the Social Sciences and Humanities Research Council of Canada, from the Spanish Ministry of Science and Innovation (Ramon y Cajal and Consolider SEJ2007‐64340) and the Barcelona GSE Research Network is gratefully acknowledged.
Marius.Brulhart@unil.ch
Mario Jametti, Mecop Institute, University of Lugano, Via G. Buffi 13, 6900 Lugano, Switzerland, email
kurt.schmidheiny@unibas.ch
Subjects:
FDI
Online Access: Fulltext
Database: Social Sciences Citation Index
Web of Science - Social Sciences Citation Index - 2012
Web of Knowledge
Web of Science
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Academic OneFile (A&I only)
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