State-Local Revenue Diversification, Stability, and Growth: Time Series Evidence
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.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Diamond, Peter A & Mirrlees, James A, 1971. "Optimal Taxation and Public Production: I--Production Efficiency," American Economic Review, American Economic Association, vol. 61(1), pages 8-27, March.
- Diamond, Peter A & Mirrlees, James A, 1971. "Optimal Taxation and Public Production II: Tax Rules," American Economic Review, American Economic Association, vol. 61(3), pages 261-78, June.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Kanbur, Ravi & Keen, Michael, 1993.
"Jeux Sans Frontieres: Tax Competition and Tax Coordination When Countries Differ in Size,"
American Economic Review,
American Economic Association, vol. 83(4), pages 877-92, September.
- Ravi Kanbur & Michael Keen, 1991. "Jeux Sans Frontieres: Tax Competition and Tax Coordination when Countries Differ in Size," Working Papers 819, Queen's University, Department of Economics.
- Fuest, Clemens, 2000. "The Political Economy of Tax Coordination as a Bargaining Game between Bureaucrats and Politicians," Public Choice, Springer, vol. 103(3-4), pages 357-82, June.
- Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780199245291, December.
- Gentry, William M. & Ladd, Helen F., 1994. "State Tax Structure and Multiple Policy Objectives," National Tax Journal, National Tax Association, vol. 47(4), pages 747-72, December.
- Richard Wagner, 1976. "Revenue structure, fiscal illusion, and budgetary choice," Public Choice, Springer, vol. 25(1), pages 45-61, March.
- Pesaran, M. H. & Shin, Y., 1997.
"Generalised Impulse Response Analysis in Linear Multivariate Models,"
Cambridge Working Papers in Economics
9710, Faculty of Economics, University of Cambridge.
- Pesaran, H. Hashem & Shin, Yongcheol, 1998. "Generalized impulse response analysis in linear multivariate models," Economics Letters, Elsevier, vol. 58(1), pages 17-29, January.
- Kangasharju, Aki & Moisio, Antti, 1998. "Births-Deaths Nexus of Firms: Estimating VAR with Panel Data," Small Business Economics, Springer, vol. 11(4), pages 303-13, December.
- Rousseau, P. L. & Wachtel, P., 2000.
"Equity markets and growth: Cross-country evidence on timing and outcomes, 1980-1995,"
Journal of Banking & Finance,
Elsevier, vol. 24(12), pages 1933-1957, December.
- Peter L. Rousseau & Paul Wachtel, 1998. "Equity Markets and Growth: Cross-Country Evidence on Timing and Outcomes, 1980-1995," Working Papers 98-09, New York University, Leonard N. Stern School of Business, Department of Economics.
- Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
- George Warskett & Stanley Winer & Walter Hettich, 1998. "The Complexity of Tax Structure in Competitive Political Systems," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 5(2), pages 123-151, May.
- 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.
- Harmon, Oskar Ragnar & Mallick, Rajiv, 1994. "The Optimal State Tax Portfolio Model: An Extension," National Tax Journal, National Tax Association, vol. 47(2), pages 395-401, June.
- 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.
- Jack P. Suyderhoud, 1994. "State-Local Revenue Diversification, Balance, and Fiscal Performance," Public Finance Review, SAGE Publishing, vol. 22(2), pages 168-194, April.
When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v:35:y:2005:i:3:p:246-65. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark L. Burkey)
If references are entirely missing, you can add them using this form.