How Low Business Tax Rates Attract Multinational Headquarters: Municipality-Level Evidence from Germany

Table 1: Descriptive statistics

Variable	Mean	Std. dev.	Min.	Max.
Business tax rate	0.14	0.01	0.09	0.31
General Expenditures	16,198.13	248,476	15.57	21,800,000
Investment Expenditure	1,449.84	9,160.54	0	519,200
Population	7.03	45.45	0.005	3,395.18
Skilled labor share	0.06	0.03	0.003	0.59
Area covered with buildings and streets	3.79	10.68	0.01	619.28
Total area	28.27	35.08	0.4	891.82

Note: Statistics refer to 11,208 German municipalities in 2005. Expenditures in 1,000 Eu-
ros. Population in 1,000. Area in km² . Sources: German Federal Labor Agency, Statistik
Lokal, Ed. 2003-07, and Statistical offices of Berlin-Brandenburg, Bremen, Hamburg and
Sachsen-Anhalt.

Table 2: Included covariates

Variable	Definition	Mean	Std. dev.
TAX	ln (taxrate)	-1.96	0.10
SKILL	ln (share of employees with tertiary education)	-2.92	0.46
POPDEN	ln (total population / total area)	0.01	1.01
AREA	ln (total area)	7.42	1.02
IDEPRAT	ln (population aged 15-65 / total population)	-0.40	0.05
BUILT	ln (area covered with buildings and streets / total area)	-2.32	0.56
INV	ln (investment expenditure / total expenditure)	-1.96	0.88
EAST	Dummy for East Germany	0.26	0.44

Note: Panel of 11,094 municipalities with at least two consecutive observations over the
period 2001-2005.

More intriguing information

1. The name is absent
2. Modelling Transport in an Interregional General Equilibrium Model with Externalities
3. Improvement of Access to Data Sets from the Official Statistics
4. The Triangular Relationship between the Commission, NRAs and National Courts Revisited
5. Structural Breakpoints in Volatility in International Markets
6. Education and Development: The Issues and the Evidence
7. Dendritic Inhibition Enhances Neural Coding Properties
8. Migrating Football Players, Transfer Fees and Migration Controls
9. ENERGY-RELATED INPUT DEMAND BY CROP PRODUCERS
10. Cultural Neuroeconomics of Intertemporal Choice