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U.S. State and Local Fiscal Policy and Economic Activity: Do We Know More Now?

Dan Rickman and Hongbo Wang

MPRA Paper from University Library of Munich, Germany

Abstract: Early reviews of the academic literature on the economic effects of state and local taxes and expenditures suggested that not enough was known upon which to base policy. The reviews called for better data and improvements in empirical methodology. This paper reviews studies conducted since the early literature reviews to assess our current state of knowledge. The conclusion of the study is that we know more now. But our knowledge is unlikely to ever be sufficient to provide universal policy guidance. Rather, we suggest that more research is needed on specific state and local policies for specific circumstances, consistent with the general principles that guide place-based policy.

Keywords: State and local taxes; regional economic growth (search for similar items in EconPapers)
JEL-codes: H2 H72 R12 R38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo and nep-ure
Date: 2018-08-07
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