Identifying Local Tax Mimicking: Administrative Borders and a Policy Reform

This paper exploits an exogenous reform of the local fiscal equalization scheme in the German State of North Rhine-Westphalia to identify tax mimicking by municipalities in the neighboring state of Lower Saxony. The spatial lag regressions provide no evidence for the existence of strategic interactions in municipal business and property taxes. In contrast, traditional spatial lag regressions that rely on variation in neighbors' demographic, political, or economic characteristics for identification provide strong evidence for strategic interactions. This pattern of results indicates that most of the extant literature overestimates the importance of local tax mimicking

Decidability Equivalence between the Star Problem and the Finite Power Problem in Trace Monoids

In the last decade, some researches on the star problem in trace monoids (is the iteration of a recognizable language also recognizable?) has pointed out the interest of the finite power property to achieve partial solutions of this problem. We prove that the star problem is decidable in some trace monoid if and only if in the same monoid, it is decidable whether a recognizable language has the finite power property. Intermediary results allow us to give a shorter proof for the decidability of the two previous problems in every trace monoid without C4-submonoid. We also deal with some earlier ideas, conjectures, and questions which have been raised in the research on the star problem and the finite power property, e.g., we show the decidability of these problems for recognizable languages which contain at most one non-connected trace. This article is published as Technical Report both at the Department of Computer Science at Dresden University of Technology and at the Laboratoire de ..