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The Texas economic model, miracle or mirage? A spatial hedonic analysis

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  • Hongbo Wang

    (Oklahoma State University)

Abstract

As a state without a personal income tax that has experienced strong employment and population growth in the past, Texas was held up as the economic policy model for Kansas and Oklahoma to follow in recently cutting their personal income tax rates. Using microlevel data, this paper examines whether Texas has benefitted from its mix of public policies by examining the geographic patterns of estimated quality-adjusted wages and housing costs across the USA. The overall finding is the absence of significantly positive capitalized effects from the policies of Texas. The only significant capitalized policy effect found was lower quality of life in Texas nonmetropolitan areas relative to those in Oklahoma.

Suggested Citation

  • Hongbo Wang, 2016. "The Texas economic model, miracle or mirage? A spatial hedonic analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(2), pages 393-417, March.
    • Handle: RePEc:spr:anresc:v:56:y:2016:i:2:d:10.1007_s00168-016-0744-y
    DOI: 10.1007/s00168-016-0744-y
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    2. Dan Rickman & Hongbo Wang, 2020. "U.S. State And Local Fiscal Policy And Economic Activity: Do We Know More Now?," Journal of Economic Surveys, Wiley Blackwell, vol. 34(2), pages 424-465, April.

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    JEL classification:

    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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