Economic Growth and Tax and Expenditure Limitations

Lindsay N. Amiel, Steven Deller () and Judith I. Stallman
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Lindsay N. Amiel: University of Wisconsin-Madison
Judith I. Stallman: University of Missouri

The Review of Regional Studies, 2012, vol. 42, issue 3, 185-206

Abstract: Using a Barro-type empirical growth framework we explore the relationship between tax and expenditure limitations (TELs) and the economic growth of U.S. states. The model uses a panel of annual data for the 50 states from 1990 to 2010, with a variable parameter specification coupled with a dynamic Generalized Method of Moments (GMM) panel estimator. In general, more restrictive tax and expenditure limitations can influence the growth process; however, this relationship varies over levels of income and type of TEL.

Date: 2012
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