Reply to Brewer, Conway, and Rork (2021)

W. Reed ()

Public Finance Review, 2021, vol. 49, issue 3, 488-491

Abstract: Conway, Brewer, and Rork (CBR) have done a thorough reproduction and replication of Reed. Their analysis extending the time period that I used, while applying the same empirical procedures, convincingly demonstrates that the estimated effect of taxes on state-level economic growth has declined in recent years. In this reply, I reflect on the capacity of the regression procedures used by CBR, Reed, and others to identify causal effects of taxes on economic growth at the state level. I identify challenges to causal inference that make it difficult to translate these findings to advise for policy makers.

Keywords: Taxes; Economic growth; Replication (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:49:y:2021:i:3:p:488-491

DOI: 10.1177/10911421211016448

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