Why Do Interstate Consumption Patterns Differ?

Robert Kirk
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Robert Kirk: Indiana University-Purdue University at Indianapolis

The Review of Regional Studies, 1991, vol. 21, issue 2, 171-183

Abstract: The credibility that can be attached to information produced by regional analysts (i.e., export base and input-output multipliers), depends, in part, on the reasonableness of underlying assumptions. One of the assumptions is the uniformity of consumption patterns. Are consumption patterns uniform? The degree of spatial variation in consumption patterns in 1982 and 1987 at the state level is measured. An OLS regression model is specified to identify determinants of interstate variation in consumption. The empirical results indicate that in addition to variation in disposable income per capita, the age distribution of the population and tax effort are important determinants. Implications for state and local tax policy and economic development strategies are considered.

Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:rre:publsh:v21:y:1991:i:2:p:171-183

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