IDEAS home Printed from https://ideas.repec.org/a/eee/regeco/v104y2024ics0166046223000947.html
   My bibliography  Save this article

Why are grocery foods taxed in the United States? Theory and spatial evidence from multilevel government interactions

Author

Listed:
  • Wang, Lingxiao
  • Zheng, Yuqing

Abstract

Grocery food sales taxes (or grocery taxes) in the United States are applied in the form of a state and/or county tax. To investigate how local governments establish these grocery taxes, we develop a dynamic gaming model to explain the county–county and county–state interactions regarding grocery taxes. Leveraging novel panel data on grocery taxes at county and state levels from 2006 to 2017, we estimate a dynamic spatial model including multilevel governments. The empirical evidence unveils three key spatial determinants that contribute to variations in county grocery tax rates. (1) A negative vertical impact from the home state, (2) a positive horizontal effect from neighboring counties, and (3) a positive diagonal effect from neighboring states.

Suggested Citation

  • Wang, Lingxiao & Zheng, Yuqing, 2024. "Why are grocery foods taxed in the United States? Theory and spatial evidence from multilevel government interactions," Regional Science and Urban Economics, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:regeco:v:104:y:2024:i:c:s0166046223000947
    DOI: 10.1016/j.regsciurbeco.2023.103959
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166046223000947
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.regsciurbeco.2023.103959?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Grocery sales taxes; Spatial tax competition; Multilevel government interaction; Commodity taxation;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:104:y:2024:i:c:s0166046223000947. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/regec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.