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U.S. State And Local Fiscal Policy And Economic Activity: Do We Know More Now?

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  • Dan Rickman
  • Hongbo Wang

Abstract

Early reviews of the academic literature on the economic effects of state and local taxes and expenditures suggested that not enough was known upon which to base policy. The reviews called for better data and improvements in empirical methodology. This paper reviews studies conducted since the early literature reviews to assess our current state of knowledge. The conclusion of the study is that we know more now. But our knowledge is unlikely to ever be sufficient to provide universal policy guidance. Rather, we suggest that more research is needed on specific state and local policies for specific circumstances, consistent with the general principles that guide place‐based policy.

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  • Dan Rickman & Hongbo Wang, 2020. "U.S. State And Local Fiscal Policy And Economic Activity: Do We Know More Now?," Journal of Economic Surveys, Wiley Blackwell, vol. 34(2), pages 424-465, April.
    • Handle: RePEc:bla:jecsur:v:34:y:2020:i:2:p:424-465
    DOI: 10.1111/joes.12316
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    3. Dan S. Rickman & Hongbo Wang, 2023. "Creating and maintaining film clusters: Synthetic control method analysis of the enactment and repeal of US state film incentives," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 363-392, April.
    4. Koirala, Samjhana & Jakus, Paul M. & Watson, Philip, 2023. "Identifying Constraints to Rural Economic Development: A Development Guidance Function Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(3), September.
    5. Martin Meurers & Johannes Moenius, 2020. "Market Potential and Fiscal Incentives Influence Firms’ Location Decisions: Evidence From U.S. Counties," Economic Development Quarterly, , vol. 34(2), pages 126-139, May.
    6. Yulong Chen & Kevin D. Duncan & Liyuan Ma & Peter F. Orazem, 2023. "How relative marginal tax rates affect establishment entry at state borders," Small Business Economics, Springer, vol. 60(3), pages 1081-1103, March.
    7. Mariam Abbas Soharwardi & Javeria Sarwar & Muhammad Imran Khan & Mariam Miraj, 2022. "Fiscal and Monetary Policy Dilemma in Pakistan to Support Economic Growth," Journal of Economic Impact, Science Impact Publishers, vol. 4(3), pages 233-243.
    8. Natalia I. Doré & Aurora A. C. Teixeira, 2023. "Empirical Literature on Economic Growth, 1991–2020: Uncovering Extant Gaps and Avenues for Future Research," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(1), pages 7-37, January.

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    More about this item

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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