Gilardi
Fakultäten » Philosophische Fakultät » Politikwissenschaft, Institut für » Prof. Dr. Fabrizio Gilardi » Gilardi
Completed research project
| Title / Titel | Tax Competition in Switzerland: Theoretical Insights and Empirical Evidence from an Ideal-typical Case of Interdependent Policy Making | ||
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| Abstract (PDF, 14 KB) | |||
| Summary / Zusammenfassung | The large and growing policy diffusion literature has convincingly documented that policy choices depend on prior policy choices in other jurisdictions. What is yet to be investigated are the mechanisms, the "how" and "why" questions, of interdependent policy making. This PhD thesis analyzes tax competition, the quintessential example of policy interdependence, by focusing on income taxation in Switzerland. Due to the availability of high-quality data, the large variation in cantonal tax rates, and the abundant prima facie evidence that policy makers react to the decisions of other cantons, the decentralized tax system of Switzerland is a promising case to study the nuances of interdependent policy making. The first paper of this cumulative dissertation theorizes the asymmetric dynamics of tax competition. Jurisdictions benefiting from positive spillovers of nearby centers are expected to fuel competitive dynamics. Using spatial data and advanced multilevel modeling, the empirical analysis supports the argument that uneven competition is a major driver of interdependent tax policy making. But will that eventually lead to a detrimental race-to-the-bottom in taxation? The second paper, co-authored with Fabrizio Gilardi, explores cooperative elements within the competitive set up of the Swiss case. We argue that socialization in institutionalized networks attenuate competitive dynamics by setting limits to the extent of competition that is considered acceptable. Spatial econometric models provide empirical evidence for this hypothesis: the findings show that competitive dynamics between cantons are substantially mitigated if the cantonal finance ministers cooperate within regional conferences. The third paper, co-authored with Katharina Füglister, further investigates horizontal cooperation among cantons and discusses the recently reformed financial equalization system, which has been designed to reduce the fiscal disparities among cantons caused by tax competition. The final paper moves from the full-fledged fiscal federal system of Switzerland to the multilevel framework of the European Union. Although the creation of the single market has intensified corporate tax competition among Member States, the establishment of a Political Union with fiscal competences, complementing economic integration, has failed so far. The fourth paper explores why. In short, this PhD thesis analyzes theoretically and empirically how and why fiscal policies are interdependent within the Swiss federal system and points to the problems and challenges of fiscal interdependencies within the institutional framework of the European Union. | ||
| Keywords / Suchbegriffe | Policy diffusion, tax competition, Switzerland, federalism | ||
| Project leadership and contacts / Projektleitung und Kontakte |
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| Other links to external web pages | http://www.fabriziogilardi.org/ http://www.fabiowasserfallen.ch/ |
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| Funding source(s) / Unterstützt durch |
Universität Zürich (position pursuing an academic career) |
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| In collaboration with / In Zusammenarbeit mit |
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| Duration of Project / Projektdauer | Sep 2008 to Aug 2012 |