EconPapers    
Economics at your fingertips  
 

Ranking State Fiscal Structures using Theory and Evidence

Neil Bania () and Joe Stone ()

University of Oregon Economics Department Working Papers from University of Oregon Economics Department

Abstract: This paper offers unique rankings of the extent to which fiscal structures of U.S. states contribute to economic growth. The rankings are novel in two key respects: they are well grounded in established growth theory, in which the effect of taxes depends both on the level of taxes and on the composition of expenditures; and they are derived from actual estimates of the link between fiscal structures and economic growth. Estimates for the latter yield a growth hill, in which the incremental effect of taxes spent on productive services and infrastructure initially rises, reaches a peak, and then declines. Rankings derived from these estimates differ sharply from typical rankings based on levels of taxation alone. Two hypothetical policy experiments highlight both the growth-hill effects of tax investments in productive services and infrastructure and the short- and long-term tradeoffs in attempting to fund strong social services.

JEL-codes: H2 H4 H7 E62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2007-06-01
References: Add references at CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://economics.uoregon.edu/papers/UO-2007-11_Stone_Fiscal.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://economics.uoregon.edu/papers/UO-2007-11_Stone_Fiscal.pdf [301 Moved Permanently]--> https://economics.uoregon.edu/papers/UO-2007-11_Stone_Fiscal.pdf)

Related works:
Journal Article: Ranking state fiscal structures using theory and evidence (2008) Downloads
Working Paper: Ranking State Fiscal Structures using Theory and Evidence (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ore:uoecwp:2007-11

Access Statistics for this paper

More papers in University of Oregon Economics Department Working Papers from University of Oregon Economics Department Contact information at EDIRC.
Series data maintained by Bill Harbaugh ().

 
Page updated 2017-12-06
Handle: RePEc:ore:uoecwp:2007-11