Fiscal Structures and Economic Growth at the State and Local Level
State and local governments have recently experienced severe budget problems. Many state legislatures and governors have cut spending or raised taxes. Such changes in fiscal structure may restore fiscal balance, but they can have adverse consequences on state and local economic growth. This article examines the relationship between the fiscal structure of state and local government and economic growth in these jurisdictions. Several general conclusions emerge from our analysis. Corporate income taxes play too small a role in state and local finance, and sales taxes too large a role. Education, transportation, and public safety expenditures may receive too much of the fiscal pie.
Volume (Year): 25 (1997)
Issue (Month): 2 (March)
|Contact details of provider:|
When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:25:y:1997:i:2:p:213-237. 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: (SAGE Publications)
If references are entirely missing, you can add them using this form.