SIMON FRASER UNIVERSITY Department of Economics Working Papers 12 - 09 “ Local Spending , Transfers and Costly Tax Collection ” Fernando Aragon

  • Fernando M. Aragón
  • Published 2012

Abstract

This paper studies the effect of costly taxation on the fiscal response of local governments to intergovernmental transfers. Using a panel dataset of Peruvian municipalities, I find robust evidence that central government’s grants have a greater stimulatory effect in municipalities facing higher tax collection costs. The results are consistent with costly… (More)

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@inproceedings{Aragn2012SIMONFU, title={SIMON FRASER UNIVERSITY Department of Economics Working Papers 12 - 09 “ Local Spending , Transfers and Costly Tax Collection ” Fernando Aragon}, author={Fernando M. Arag{\'o}n}, year={2012} }