25 Jahre IWH

Veranstaltung
17
Okt 2016

14:15 - 15:45

Commercial Land Use and Interjurisdictional Competition

This paper considers effects of local public finances on land use. A theoretical analysis explores the trade off faced by a local government deciding about the amount of land made available for commercial use.

Speaker
Professor Dr. Thiess Büttner , Friedrich-Alexander-Universität Erlangen-Nürnberg
Location
IWH-Konferenzraum
Professor Dr. Thiess Büttner

Über den Autor

Professor Dr. Thiess Büttner

Thiess Büttner (Jahrgang 1966) studierte von 1986 bis 1993 Volks-wirtschaftslehre und Internationale Wirtschaftsbeziehungen an den Universitäten Göttingen und Konstanz. Nach der Promotion in Konstanz ging er an das Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim. Im Jahr 2003 habilitierte er sich an der Universität Mannheim. Im Jahr 2004 nahm er einen Ruf auf die CESifo Professur für Finanzwissenschaft an die Ludwig-Maximilians-Universität München an, verbunden mit der Leitung des Bereichs „Öffentlicher Sektor“ am ifo Institut für Wirtschaftsforschung.

This paper considers effects of local public finances on land use. A theoretical analysis explores the trade off faced by a local government deciding about the amount of land made available for commercial use. While more commercial land tends to attract mobile factors, its expansion is assumed to have adverse effects on the quality of life. A distortion of the decision is shown to arise in an environment with tax competition, where a fiscal incentive arises to expand commercial land use. Fiscal redistribution through equalization grants, however, reduces this incentive. Based on the theory, the effect of tax competition and fiscal redistribution on commercial land use is investigated empirically using a large dataset of German municipalities. In order to identify differences in the degree of fiscal redistribution, I exploit institutional characteristics of the system of fiscal equalization to which these municipalities are subjected. The results confirm that the amount of land dedicated to commercial land use, tends to be higher in municipalities that are exposed to more intense tax competition.

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