Tax Policy and State Economic Growth: The Long-Run and Short-Run of It

Posted: 18 Sep 2013

See all articles by Steven Yamarik

Steven Yamarik

California State University, Long Beach - Department of Economics; Henan University

Andrew Ojede

California State University, Long Beach - Department of Economics

Date Written: September 16, 2011

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

JEL Classification: E62, H71, R11

Suggested Citation

Yamarik, Steven and Ojede, Andrew, Tax Policy and State Economic Growth: The Long-Run and Short-Run of It (September 16, 2011). Economics Letters, Vol. 116, No. 2, 2012, Available at SSRN: https://ssrn.com/abstract=2326594

Steven Yamarik (Contact Author)

California State University, Long Beach - Department of Economics ( email )

1250 Bellflower Blvd
Long Beach, CA 90840-4607
United States

HOME PAGE: http://www.csulb.edu/~syamarik

Henan University ( email )

85 Minglun St. Shunhe
Kaifeng, Henan 475001
China

HOME PAGE: http://cfds.henuecon.education/index.php/research/data/yes-capital-data

Andrew Ojede

California State University, Long Beach - Department of Economics ( email )

1250 Bellflower Blvd
Long Beach, CA 90840-4607
United States

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