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The Texas Economic Model, Miracle or Mirage? A Spatial Hedonic Analysis

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  • Wang, Hongbo

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 micro-level 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 U.S. The overall finding is an 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

  • Wang, Hongbo, 2015. "The Texas Economic Model, Miracle or Mirage? A Spatial Hedonic Analysis," MPRA Paper 66016, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:66016
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    Cited by:

    1. 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.
    2. Victor Iturra, 2018. "Amenity Decomposition: The Role Played by Firms and Workers in Explaining Spatial Wage Differences in Chile," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 109(4), pages 542-560, September.

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    More about this item

    Keywords

    State income tax; Kansas; Oklahoma; Texas;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • 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

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