Tax policy and state economic growth: The long-run and short-run of it
This paper uses a pooled mean group (PMG) estimator to evaluate the effects of tax policy on state-level growth. We find that property and sales tax rates have negative effects on long-run income growth, while income tax rates have no impact.
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- Stephen M. Miller & Frank S. Russek, 1997. "Fiscal Structures and Economic Growth at the State and Local Level," Public Finance Review, SAGE Publishing, vol. 25(2), pages 213-237, March.
- Harden, J. William & Hoyt, William H., 2003. "Do States Choose Their Mix of Taxes to Minimize Employment Losses?," National Tax Journal, National Tax Association, vol. 56(1), pages 7-26, March.
- Helms, L Jay, 1985. "The Effect of State and Local Taxes on Economic Growth: A Time Series-Cross Section Approach," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 574-82, November.
- Engle, Robert & Granger, Clive, 2015.
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- Yamarik, Steven, 2000. "Can tax policy help explain state-level macroeconomic growth?," Economics Letters, Elsevier, vol. 68(2), pages 211-215, August.
- Carroll, Robert & Wasylenko, Michael J., 1994. "Do State Business Climates Still Matter? -- Evidence of a Structural Change," National Tax Journal, National Tax Association, vol. 47(1), pages 19-37, March.
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"Estimating long-run relationships from dynamic heterogeneous panels,"
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- Pesaran, M.H. & Smith, R., 1992. "Estimating Long-Run Relationships From Dynamic Heterogeneous Panels," Cambridge Working Papers in Economics 9215, Faculty of Economics, University of Cambridge.
- Reed, W. Robert, 2008. "The Robust Relationship between Taxes and U.S. State Income Growth," National Tax Journal, National Tax Association, vol. 61(1), pages 57-80, March.
- Michael Wasylenko, 1997. "Taxation and economic development: the state of the economic literature," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 37-52.
- Steven Yamarik, 2013. "State-Level Capital And Investment: Updates And Implications," Contemporary Economic Policy, Western Economic Association International, vol. 31(1), pages 62-72, 01.
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