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State-Local Revenue Diversification, Stability, and Growth: Time Series Evidence

  • Schunk, Donald

    (U SC)

  • Porca, Sanela

    (U SC Aiken)

Registered author(s):

    A common argument put forth in tax reform discussions is that a balanced revenue system is better equipped to handle downturns. The purpose of this paper is to consider the empirical relationship between a scalar measure of the diversity of a state's state-local revenue system and the stability and growth of that revenue system. This evidence is drawn from panel data vector autoregression models. Impulse response analysis from these PVARs indicates that movements toward greater revenue system balance lead to greater revenue growth stability as well as faster rates of revenue growth itself.

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    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/100/51
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    Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

    Volume (Year): 35 (2005)
    Issue (Month): 3 ()
    Pages: 246-65

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    Handle: RePEc:rre:publsh:v:35:y:2005:i:3:p:246-65
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    14. Ping Wang & Paul Dunne, 2003. "Real Exchange Rate Fluctuations in East Asia: Generalized Impulse-Response Analysis," Asian Economic Journal, East Asian Economic Association, vol. 17(2), pages 185-203, 06.
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    16. Bradley Ewing & Yongsheng Wang, 2005. "Single housing starts and macroeconomic activity: an application of generalized impulse response analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 12(3), pages 187-190.
    17. Jack P. Suyderhoud, 1994. "State-Local Revenue Diversification, Balance, and Fiscal Performance," Public Finance Review, SAGE Publishing, vol. 22(2), pages 168-194, April.
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