Impacts of local and state tax and expenditure limits on economic growth

Impacts of local and state tax and expenditure limits on economic growth

We focus on the impact of statutory and constitutional Tax and Expenditure Limits (TELs) on growth levels and rates of convergence. Using a panel of US state data from 1987 to 2004, we report a family of neoclassical growth models. Using simple dummy variables to identify states with and without str...

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Veröffentlicht in:Applied economics letters 2010-05, Vol.17 (7), p.645-648
Hauptverfasser: Stallmann, Judith I., Deller, Steven
Format: Artikel
Sprache:eng
Schlagworte:
Economic growth
Expenditures
Fiscal policy
Government spending
Growth models
Impact analysis
Local finance
Municipal taxation
State taxes
Studies
Tax rates
U.S.A
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Beschreibung
Zusammenfassung:We focus on the impact of statutory and constitutional Tax and Expenditure Limits (TELs) on growth levels and rates of convergence. Using a panel of US state data from 1987 to 2004, we report a family of neoclassical growth models. Using simple dummy variables to identify states with and without strict TELs, we find that local property tax levy limits do not significantly influence income growth and convergence rates. Results for state revenue and expenditure limits suggest that more recent limits may have negatively affected income growth and slowed convergence.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504850802297954