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Reply to Brewer, Conway, and Rork (2021)

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  • W. Robert Reed

Abstract

Conway, Brewer, and Rork (CBR) have done a thorough reproduction and replication of Reed. Their analysis extending the time period that I used, while applying the same empirical procedures, convincingly demonstrates that the estimated effect of taxes on state-level economic growth has declined in recent years. In this reply, I reflect on the capacity of the regression procedures used by CBR, Reed, and others to identify causal effects of taxes on economic growth at the state level. I identify challenges to causal inference that make it difficult to translate these findings to advise for policy makers.

Suggested Citation

  • W. Robert Reed, 2021. "Reply to Brewer, Conway, and Rork (2021)," Public Finance Review, , vol. 49(3), pages 488-491, May.
    • Handle: RePEc:sae:pubfin:v:49:y:2021:i:3:p:488-491
    DOI: 10.1177/10911421211016448
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    References listed on IDEAS

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    1. Reed, W. Robert, 2008. "The Robust Relationship Between Taxes and U.S. State Income Growth," National Tax Journal, National Tax Association;National Tax Journal, vol. 61(1), pages 57-80, March.
    2. Reed, W. Robert, 2006. "Democrats, republicans, and taxes: Evidence that political parties matter," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 725-750, May.
    3. W. Robert Reed & Cynthia L. Rogers, 2004. "Tax Cuts and Employment in New Jersey: Lessons From a Regional Analysis," Public Finance Review, , vol. 32(3), pages 269-291, May.
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