【摘要】Complementing recent theoretical models of tax competition with endogenous leader-ship, we empirically model local policy diffusion as a dynamic asymmetric process. Using a settingwhere local option sales taxes rapidly transitioned from nonexistence to ubiquity, we construct a policyleadership index to classify jurisdictions as leaders or followers. Using models that control for verticaltax competition effects, we show how asymmetric leader–follower dynamics characterize horizontal taxcompetition over the three decades that follow. A placebo test further supports our main conclusions.This methodological approach could be adapted to other settings where policies exhibit both extensiveand intensive margins.

【文献来源】Burge G S;Rogers C L.Journal of Regional Science.2016（2）