The growth and variability of regional taxes: an application to Italy

REFERENCES

• Acquaah, M., & Gelardi, A. (2008). The growth and stability of revenues in British Columbia. Journal of Business and Economic Studies, 14(2), 39–59.
   Google Scholar
• Banerjee, A., Dolado, J. J., Hendry, D. F., & Smith, G. W. (1986). Exploring equilibrium relationship in econometrics through static models: Some Monte Carlo evidence. Oxford Bulletin of Economics and Statistics, 48(3), 253–277. doi: 10.1111/j.1468-0084.1986.mp48003005.x
   Web of Science ®Google Scholar
• Blöchliger, H., & Nettley, N. (2015). Sub-central tax autonomy: 2011 update (OECD Working Papers on Fiscal Federalism No. 20). Paris: Organisation for Economic Co-operation and Development (OECD).
   Google Scholar
• Bouthevillain, C., Cour-Thimann, P., van der Dool, G., Hernandez de Cos, P., Langenus, G., Mohr, M., … Tujula, M. (2001). Cyclically adjusted budget balances: An alternative approach (ECB Working Paper No. 77). Frankfurt: European Central Bank (ECB).
   Google Scholar
• Bruce, D., Fox, W. F., & Tuttle, M. H. (2006). Tax base elasticities: A multi-state analysis of long-run and short-run dynamics. Southern Economic Journal, 73(2), 315–341. doi: 10.2307/20111894
   Web of Science ®Google Scholar
• Chudik, A., & Pesaran, M. H. (2015). Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors. Journal of Econometrics, 188(2), 393–420. doi: 10.1016/j.jeconom.2015.03.007
   Web of Science ®Google Scholar
• Cornia, G. C., & Nelson, R. D. (2010). State tax revenue growth and volatility. Federal Reserve Bank of St. Louis Regional Economic Development, 6(1), 23–58.
   Google Scholar
• Ditzen, J. (2016). xtdcce: Estimating dynamic common correlated effects in Stata (Working Paper No. 1601). Edinburgh: Spatial Economics and Econometrics Centre, Heriot Watt University.
   Google Scholar
• Dye, R. F. (2004). State revenue cyclicality. National Tax Journal, 57, 133–145. doi: 10.17310/ntj.2004.1.07
   Web of Science ®Google Scholar
• Dye, R. F., & McGuire, T. J. (1991). Growth and variability of state individual income and general sales taxes. National Tax Journal, 44, 55–66.
   Web of Science ®Google Scholar
• Driscoll, J. C., & Kraay, A. C. (1998). Consistent covariance matrix estimation with spatially dependent panel data. Review of Economics and Statistics 80(4), 549–560. doi: 10.1162/003465398557825
   Web of Science ®Google Scholar
• Everaert, G., & De Groote, T. (2016). Common correlated effects estimation of dynamic panels with cross-sectional dependence. Econometric Reviews, 35(3), 428–463. doi: 10.1080/07474938.2014.966635
   Web of Science ®Google Scholar
• Engle, R. F., & Granger, C. W. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrica: Journal of the Econometric Society, 55, 251–276. doi: 10.2307/1913236
   Web of Science ®Google Scholar
• Fricke, H., & Süssmuth, B. (2014). Growth and volatility of tax revenues in Latin America. World Development, 54, 114–138. doi: 10.1016/j.worlddev.2013.07.007
   Web of Science ®Google Scholar
• Fox, W. F., & Campbell, C. (1984). Stability of the state sales tax income elasticity. National Tax Journal, 37, 201–212.
   Web of Science ®Google Scholar
• Garrett, T. (2009). Evaluating state tax revenue variability: A portfolio approach. Applied Economics Letter, 16(3), 243–246. doi: 10.1080/13504850601018403
   Web of Science ®Google Scholar
• Glaeser, E., Scheinkman, J., & Shleifer, A. (1995). Economic growth in a cross-section of cities. Journal of Monetary Economics, 36, 117–143. doi: 10.1016/0304-3932(95)01206-2
   Web of Science ®Google Scholar
• Grisorio, M. J., & Prota, F. (2015). The short and the long run relationship between fiscal decentralization and public expenditure composition in Italy. Economics Letters, 130, 113–116. doi: 10.1016/j.econlet.2015.03.021
   Web of Science ®Google Scholar
• Groves, H. M., & Kahn, C. H. (1952). The stability of state and local tax yields. American Economic Review, 42, 87–102.
   Web of Science ®Google Scholar
• Hadri, K., & Kurozumi, E. (2012). A simple panel stationarity test in the presence of serial correlation and a common factor. Economics Letters, 115(1), 31–34. doi: 10.1016/j.econlet.2011.11.036
   Web of Science ®Google Scholar
• Hines Jr, J. R. (2010). State fiscal policies and transitory income fluctuations. Brookings Papers on Economic Activity, 2010(2), 313–337. doi: 10.1353/eca.2010.0017
   Google Scholar
• Ladd, H., & Weist, D. (1991). General sales taxes. In T. J. McGuire & D. W. Naimark (Eds.), State and local finance for the 1990s: A case study of Arizona (pp. 465–480). Tempe: Arizona State University.
   Google Scholar
• Markowitz, H. (1952). Portfolio selection. Journal of Finance, 7, 77–91.
   Web of Science ®Google Scholar
• Mikesell, J. L. (1977). Income elasticities of state sales tax base components. Quarterly Review of Economics and Business, 17, 83–94.
   Google Scholar
• Oates, W. E. (2005). Toward a second-generation theory of fiscal federalism. International Tax and Public Finance, 12(4): 349–373. doi: 10.1007/s10797-005-1619-9
   Web of Science ®Google Scholar
• Organisation for Economic Co-operation and Development (OECD). (1999). Taxing powers of state and local government (OECD Tax Policy Studies No. 1). Paris: OECD.
   Google Scholar
• Pesaran, M. H. (2006). Estimation and inference in large heterogenous panels with multifactor error structure. Econometrica, 74, 967–1012. doi: 10.1111/j.1468-0262.2006.00692.x
   Web of Science ®Google Scholar
• Pesaran, M. H. (2015). Testing weak cross-sectional dependence in large panels. Econometric Reviews, 34(6–10), 1089–1117. doi: 10.1080/07474938.2014.956623
   Web of Science ®Google Scholar
• Pesaran, M. H., & Tosetti, E. (2011). Large panels with common factors and spatial correlation. Journal of Econometrics, 161(2), 182–202. doi: 10.1016/j.jeconom.2010.12.003
   Web of Science ®Google Scholar
• Price, R., & Dang, T. (2011). Adjusting fiscal balances for asset price cycles (OECD Economics Department Working Papers No. 868). Paris: Organisation for Economic Co-operation and Development (OECD).
   Google Scholar
• Riedl, A., & Rocha-Akis, S. (2012). How elastic are national corporate income tax bases in OECD countries? The role of domestic and foreign tax rates. Canadian Journal of Economics/Revue canadienne d’économique, 45(2), 632–671. doi: 10.1111/j.1540-5982.2012.01713.x
   Web of Science ®Google Scholar
• Rodden, J., & Wibbels, E. (2010). Fiscal decentralization and the business cycle: An empirical study of seven federations. Economics and Politics, 22(1), 37–67. doi: 10.1111/j.1468-0343.2009.00350.x
   Web of Science ®Google Scholar
• Sobel, R., & Holcombe, R. (1996). Measuring the growth and variability of tax bases over the business cycle. National Tax Journal, 49(4), 535–552.
   Web of Science ®Google Scholar
• Sobel, R. S., & Wagner, G. A. (2003). Cyclical variability in state government revenue: Can tax reform reduce it? State Tax Notes, 29(8), 569–576.
   Google Scholar
• Stansel, D. (2005). Local decentralization and local economic growth: A cross-sectional examination of US metropolitan areas. Journal of Urban Economics, 57, 55–72. doi: 10.1016/j.jue.2004.08.002
   Web of Science ®Google Scholar
• Ter-Minassian, T. (1997). Decentralization and macroeconomic management (IMF Working Paper No. 97/155). Washington, DC: International Monetary Fund (IMF).
   Google Scholar
• Tosun, M. S., & Abizadeh, S. (2005). Economic growth and tax components: An analysis of tax changes in OECD. Applied Economics, 37, 2251–2263. doi: 10.1080/00036840500293813
   Web of Science ®Google Scholar
• Weingast, B. R. (2009). Second generation fiscal federalism: The implications of fiscal incentives. Journal of Urban Economics, 65(3), 279–293. doi: 10.1016/j.jue.2008.12.005
   Web of Science ®Google Scholar
• Westerlund, J. (2007). Testing for error correction in panel data. Oxford Bulletin of Economics and Statistics, 69, 709–748. doi: 10.1111/j.1468-0084.2007.00477.x
   Web of Science ®Google Scholar
• White, F. C. (1983). Trade-off in growth and stability in state taxes. National Tax Journal, 36(1), 103–114.
   Web of Science ®Google Scholar
• Wickens, M. R., & Breusch, T. S. (1988). Dynamic specification, the long run and the estimation of transformed regression model. Economic Journal, 98(309), 189–205. doi: 10.2307/2233314
   Web of Science ®Google Scholar
• Wilford, W. T. (1965). State tax stability criteria and the revenue–income coefficient reconsidered. National Tax Journal, 18(3), 304–312.
   Web of Science ®Google Scholar
• Williams, W., Anderson, R., Froehle, D., & Lamb, K. (1973). The stability, growth, and stabilizing influence of state taxes. National Tax Journal, 26, 267–274.
   Google Scholar
• Wolswijk, G. (2009). The short- and long-run tax revenue response to changes in tax bases. Economic Bulletin, 29(3), 1960–1970.
   Google Scholar