Does inter-jurisdictional competition engender a “race to the bottom”? A meta-regression analysis

Costa-Font, Joan, De-Albuquerque, Filipe and Doucouliagos, Hristos 2015, Does inter-jurisdictional competition engender a “race to the bottom”? A meta-regression analysis, Economics & politics, vol. 27, no. 3, pp. 488-508, doi: 10.1111/ecpo.12066.

Attached Files
Name Description MIMEType Size Downloads

Title Does inter-jurisdictional competition engender a “race to the bottom”? A meta-regression analysis
Author(s) Costa-Font, Joan
De-Albuquerque, Filipe
Doucouliagos, HristosORCID iD for Doucouliagos, Hristos
Journal name Economics & politics
Volume number 27
Issue number 3
Start page 488
End page 508
Total pages 21
Publisher Wiley-Blackwell
Place of publication Chichester, Eng.
Publication date 2015-11
ISSN 0954-1985
Summary A growing literature documents the existence of strategic political reactions to publicexpenditure between rival jurisdictions. These interactions can potentially createa downward expenditure spiral (“race to the bottom”) or a rising expenditure spiral(“race to the top”). However, in the course of identifying the existence of such interactions and ascertaining their underlying triggers, the empirical evidence has produced markedly heterogeneous findings. Most of this heterogeneity can be traced back to study design and institutional differences. This article contributes to the literature by applying meta-regression analysis to quantify the magnitude of strategic inter-jurisdictional expenditure interactions, controlling for study, and institutional characteristics. We find several robust results beyond confirming that jurisdictions do engage in strategic expenditure interactions, namely that strategic interactions: (i) are weakening over time, (ii) are stronger among municipalities than among higher levels of government, and (iii) appear to be more influenced from tax competition than yardstick competition, with capital controls and fiscal decentralization shaping the magnitude of fiscal interactions.
Language eng
DOI 10.1111/ecpo.12066
Field of Research 140210 International Economics and International Finance
Socio Economic Objective 910110 Taxation
HERDC Research category C1.1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2015, John Wiley & Sons
Persistent URL

Document type: Journal Article
Collections: Faculty of Business and Law
Department of Economics
Connect to link resolver
Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved.

Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 9 times in TR Web of Science
Scopus Citation Count Cited 9 times in Scopus
Google Scholar Search Google Scholar
Access Statistics: 373 Abstract Views, 2 File Downloads  -  Detailed Statistics
Created: Sun, 23 Oct 2016, 07:56:24 EST

Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact