The role of property taxes on entrepreneurial activity

João Pereira dos Santos, Miguel Ferreira, and Ana Venâncio conducted a study about the role of property taxes on entrepreneurial activity: “Collateral Value and Entrepreneurship: Evidence from a Property Tax Reform”.

In this paper, they find that municipalities that were forced to decrease their property tax rate experienced higher entry rates in the manufacturing sector vis-à-vis municipalities that had a property tax rate at or below the new upper bound.

Read the full study here: https://ideas.repec.org/p/mde/wpaper/0137.html