Property-tax performance in Kosovo and selected Western Balkan economies: A comparison with Croatia

Aim/purpose – This study examines property-tax performance – measured as property--tax revenue as a percentage of gross domestic product (GDP) – in Kosovo, four selected Western Balkan economies, and Croatia as a comparative benchmark during 2007-2023, focusing on the economic, fiscal, administrative, and institutional factors associated with performance.

Design/methodology/approach – The study employs a balanced dataset of 102 country--year observations. It combines descriptive analysis and comparisons with a country- and year-fixed effects model. Because the panel contains only six country clusters, inference uses CR2 variance estimation with Satterthwaite degrees-of-freedom corrections and wild cluster bootstrap t-tests with Webb weights. The econometric analysis is complemented by a comparative institutional assessment of cadastral modernization, fiscal decentralization, administrative capacity, and institutional quality.

Findings – Regional differences in property-tax performance remain evident. Fiscal decentralization shows a positive conditional association under both small-cluster procedures. GDP per capita, administrative capacity, and institutional quality do not meet the 5% significance threshold under either procedure. Cadastral evidence is examined separately and is not included in the baseline model.

Research implications/limitations – The study provides evidence that may help policy--makers, tax administrations, municipal authorities, and cadastral agencies assess institutional arrangements relevant to local revenue mobilization. Nevertheless, the findings should be interpreted in light of limitations related to data comparability across countries and the use of country-level rather than municipal-level observations. Additional limitations arise from only six country clusters and a dependent variable that does not directly measure collection efficiency, compliance, or tax potential.

Originality/value/contribution – The study contributes to the literature on property taxation and local public finance by combining a harmonized comparative panel with smallcluster inference and explicitly separating baseline econometric associations from contextual institutional interpretations and supplementary cadastral evidence. This distinction clarifies which conclusions the model supports and which remain context-dependent across heterogeneous fiscal and administrative systems.