Ranking State Fiscal Structures using Theory and Evidence
| dc.contributor.author | Bania, Neil | |
| dc.contributor.author | Stone, Joe A. | |
| dc.date.accessioned | 2009-01-15T17:36:30Z | |
| dc.date.available | 2009-01-15T17:36:30Z | |
| dc.date.issued | 2007-06 | |
| dc.description | 30 p. | en |
| dc.description.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. | en |
| dc.identifier.uri | https://hdl.handle.net/1794/8306 | |
| dc.language.iso | en_US | en |
| dc.publisher | University of Oregon, Dept of Economics | en |
| dc.relation.ispartofseries | University of Oregon Economics Department Working Papers;2008-6 | |
| dc.subject | Tax investments | en |
| dc.subject | Fiscal structures | en |
| dc.subject | Economic growth | en |
| dc.subject | Growth theory | en |
| dc.title | Ranking State Fiscal Structures using Theory and Evidence | en |
| dc.type | Working Paper | en |