Tax mimicking and intermunicipal cooperation: Evidence from spatial quantile regression (with Piguet V & Védrine L)

This paper explores the heterogeneity hidden behind municipalities tax mimicking behaviours using spatial quantile regressions. First, we test if the intensity of tax mimicking varies with municipalities tax levels. Second, we use these results with the aim of identifying the source of such a tax mimicking (tax competition vs. yardstick competition). Third, the effect of intermunicipal cooperation is taken into account in order to test if it lessens local tax interactions, as it is intended for.