Race to the debt trap?: spatial econometric evidence on debt in German municipalities ; conference paper

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Bibliographic Details
Authors and Corporations:	Fossen, Frank M. (Author), Freier, Ronny (Author), Martin, Thorsten (Author)
Other Authors:	Freier, Ronny 1979- [Author] • Martin, Thorsten [Author]
Edition:	This draft: January 20, 2014
Type of Resource:	E-Book Conference Proceedings
Language:	English
published:	[Kiel, Hamburg] ZBW 2014
Series:	Verein für Socialpolitik: Jahrestagung des Vereins für Socialpolitik 2014 ; C17-V2 Deutsches Institut für Wirtschaftsforschung: Discussion papers ; 1358
Subjects:	public debt tax and spending competition municipality data spatial interactions spatial panel estimation Graue Literatur Konferenzschrift
Source:	Verbunddaten SWB Lizenzfreie Online-Ressourcen

Description
Summary:	Through an intertemporal budget constraint, jurisdictions may gain advantages in tax and spending competition by 'competing' on debt. While the existing spatial econometric literature focuses on tax and spending competition, very little is known about spatial interaction via public debt. This paper estimates the spatial interdependence of public debt among German municipalities using a panel on municipalities in the two largest German states from 1999 to 2006. We find signifi cant and robust interaction eff ects between debt of neighboring municipalities, which we compare to spatial tax and spending interactions. The results indicate that a municipality increases its per capita debt by 16-33 Euro as a reaction to an increase of 100 Euro in neighboring municipalities.
Physical Description:	Online-Ressource (39 S.); graph. Darst
Type of Resource:	Systemvoraussetzungen: Acrobat Reader.