Uncertainty, inter-area tax differentials, and industrial location

Benzion Barlev*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Empirical investigations have demonstrated that the location effects of business taxation and of inter-area tax differentials are not of major importance. This paper attempts to explain the above results by showing that the uncertainty involved in predicting future tax rates and tax differentials nullifies their location effects. It is then shown, both theoretically as well as empirically, that reducing the uncertainty of future tax benefits has a significant effect on industrial location patterns.

Original languageEnglish
Pages (from-to)37-44
Number of pages8
JournalGeoforum
Volume19
Issue numberC
DOIs
StatePublished - 1974

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