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Tax policy and state economic growth: The long-run and short-run of it

Andrew Ojede () and Steven Yamarik ()

Economics Letters, 2012, vol. 116, issue 2, 161-165

Abstract: This paper uses a pooled mean group (PMG) estimator to evaluate the effects of tax policy on state-level growth. We find that property and sales tax rates have negative effects on long-run income growth, while income tax rates have no impact.

Keywords: Tax; Regional growth; PMG (search for similar items in EconPapers)
JEL-codes: E62 H71 R11 (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1016/j.econlet.2012.02.023

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