Una verifica empirica del ciclo elettorale nelle scelte di politica fiscale dei governi locali marchigiani

Abstract

- In this paper we conduct a dynamic panel data analysis using 246 municipalities of the Marche region in order to investigate the presence of electoral budget cycle in local tax setting. Results show that local governments significantly decrease property tax rate during the election year. Although incumbent politicians can choose the tax rate in a range from 4% to 7%, results highlight that the range is not a hindrance to engaging electoral competition at the local government level.