360
Views
7
CrossRef citations to date
0
Altmetric
Original Articles

Sales Tax Competition among State–Local Governments: Evidence from the US Counties

References

  • Adams, J., Clark, M., Ezrow, L., & Glasgow, G. (2004). Understanding change and stability in party ideologies: Do parties respond to public opinion or to past election results? British Journal of Political Science, 34(4), 589–610. doi:10.1017/S0007123404000201
  • Afonso, W. B. (2014). Local Sales taxes as a means of increasing revenues and reducing property tax burdens: An analysis using propensity score matching. Public Budgeting & Finance, 34(2), 24–43.
  • Afonso, W. B. (2015). Leviathan or flypaper: Examining the fungibility of earmarked local sales taxes for transportation. Public Budgeting & Finance, 35(3), 1–23.
  • Agrawal, D. R. (2012). Games within borders: Are geographically differentiated taxes optimal? International Tax and Public Finance, 19(4), 574–597.
  • Agrawal, D. R. (2014). LOST in America: Evidence on local sales taxes from national panel data. Regional Science and Urban Economics, 49, 147–163.
  • Agrawal, D. R. (2015). The tax gradient: Spatial aspects of fiscal competition. American Economic Journal: Economic Policy, 7(2), 1–29.
  • Alonso-Borrego, C., & Arellano, M. (1999). Symmetrically normalized instrumental-variable estimation using panel data. Journal of Business & Economic Statistics, 17(1), 36–49.
  • Apolte, T. (2001). How tame will leviathan become in institutional competition–competition among governments in the provision of public goods. Public Choice, 107(3–4), 359–381.
  • Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277–297.
  • Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29–51.
  • Baicker, K. (2005). The spillover effects of state spending. Journal of Public Economics, 89(2–3), 529–544.
  • Baltagi, B. H. (2008). Econometric analysis of panel data. New York, NY: John Wiley & Sons.
  • Baum, C. F., Schaffer, M. E., & Stillman, S. (2007). Enhanced routines for instrumental variables/GMM estimation and testing. Stata Journal, 7(4), 465–506.
  • Berry, F. S., & Berry, W. D. (1992). Tax innovation in the states: Capitalizing on political opportunity. American Journal of Political Science, 36(3), 715–742.
  • Besley, T. J., & Case, A. (1995). Incumbent behavior: Vote-seeking, tax-setting, and yardstick competition. The American Economic Review, 85(1), 25–45.
  • Besley, T. J., & Rosen, H. S. (1998). Vertical externalities in tax setting: Evidence from gasoline and cigarettes. Journal of Public Economics, 70(3), 383–398.
  • Bhargava, A. (1991). Identification and panel data models with endogenous regressors. The Review of Economic Studies, 58(1), 129–140.
  • Bivand, R., & Szymanski, S. (1997). Spatial dependence through local yardstick competition:: Theory and testing. Economics Letters, 55(2), 257–265.
  • Bosch, N., & Solé-Ollé, A. (2007). Yardstick competition and the political costs of raising taxes: An empirical analysis of Spanish municipalities. International Tax and Public Finance, 14(1), 71–92.
  • Burge, G. S., & Piper, B. (2012). Strategic fiscal interdependence: County and municipal adoptions of local option sales taxes. National Tax Journal, 65(2), 387–415.
  • Burge, G. S., & Rogers, C. L. (2011). Local option sales taxes and consumer spending patterns: Fiscal interdependence under multi-tiered local taxation. Regional Science and Urban Economics, 41(1), 46–58.
  • Carroll, D. A. (2009). Diversifying municipal government revenue structures: Fiscal illusion or instability? Public Budgeting & Finance, 29(1), 27–48.
  • Case, A. C. (1993). Interstate tax competition after TRA86. Journal of Policy Analysis and Management, 12(1), 136–148.
  • Case, A. C., Rosen, H. S., & Hines, J. R., Jr. (1993). Budget spillovers and fiscal policy interdependence: Evidence from the states. Journal of Public Economics, 52(3), 285–307.
  • CQ Press. (2011). Voting and elections collection. Retrieved from http://www.cqpress.com/product/CQ-Voting-and-Elections-Collection.html
  • Davis, O. A., Dempster, M. A. H., & Wildavsky, A. (1974). Toward a predictive theory of the federal budgetary process. British Journal of Political Science, 4, 419–452.
  • Devereux, M. P., Lockwood, B., & Redoano, M. (2007). Horizontal and vertical indirect tax competition: Theory and some evidence from the USA. Journal of Public Economics, 91(3), 451–479.
  • Drenkard, S. (2011). Ranking state and local sales taxes. Journal of State Taxation, 30(1), 53–55.
  • Egger, P., Pfaffermayr, M., & Winner, H. (2005a). Commodity taxation in a ‘linear’world: A spatial panel data approach. Regional Science and Urban Economics, 35(5), 527–541.
  • Egger, P., Pfaffermayr, M., & Winner, H. (2005b). An unbalanced spatial panel data approach to US state tax competition. Economics Letters, 88(3), 329–335.
  • Esteller-Moré, Á., & Solé-Ollé, A. (2001). Vertical income tax externalities and fiscal interdependence: Evidence from the US. Regional Science and Urban Economics, 31(2), 247–272.
  • Fox, W. F. (1986). Tax structure and the location of economic activity along state borders. National Tax Journal, 39(4), 387–401.
  • Haufler, A. (1996). Tax coordination with different preferences for public goods: Conflict or harmony of interest? International Tax and Public Finance, 3(1), 5–28.
  • Hou, Y., & Seligman, J. S. (2010). LOST stability? Consumption taxes and the cyclical variability of state and local revenues. Proceedings of the 100th Annual Meeting of the National Tax Association.
  • Jacobs, J. P. A. M., Ligthart, J. E., & Vrijburg, H. (2010). Consumption tax competition among governments: Evidence from the United States. International Tax and Public Finance, 17(3), 271–294.
  • Jung, C. (2001). Does the local-option sales tax provide property tax relief? The georgia case. Public Budgeting & Finance, 21(1), 73–86.
  • Kanbur, R., & Keen, M. (1993). Jeux sans frontiers: Tax competition and tax coordination when countries differ in size. The American Economic Review, 83(4), 877–892.
  • Kapoor, M., Kelejian, H. H., & Prucha, I. R. (2007). Panel data models with spatially correlated error components. Journal of Econometrics, 140(1), 97–130.
  • Keen, M., & Kotsogiannis, C. (2003). Leviathan and capital tax competition in federations. Journal of Public Economic Theory, 5(2), 177–199.
  • Kim, D., Bae, S. S., & Eger, R. J. (2009). Is local discretionary sales tax adopted to counteract fiscal stress? The case of Florida counties. Economic Development Quarterly, 23(2), 150–166.
  • Koethenbuerger, M. (2011). How do local governments decide on public policy in fiscal federalism? Tax vs. expenditure optimization. Journal of Public Economics, 95(11–12), 1516–1522.
  • Levitt, S. D. (1996). How do senators vote? Disentangling the role of voter preferences, party affiliation, and senator ideology. The American Economic Review, 44(1), 425–441.
  • Lockwood, B. (1993). Commodity tax competition under destination and origin principles. Journal of Public Economics, 52(2), 141–162.
  • Luna, L. (2004). Local sales tax competition and the effect on county governments’ tax rates and tax bases. Journal of the American Taxation Association, 26(1), 43–61.
  • Luna, L., Bruce, D. J., & Hawkins, R. R. (2007). Maxing out: An analysis of local option sales tax rate increases. National Tax Journal, 60(1), 45–63.
  • Mintz, J., & Tulkens, H. (1986). Commodity tax competition between member states of a federation: Equilibrium and efficiency. Journal of Public Economics, 29, 133–172.
  • Nielsen, S. B. (2001). A simple model of commodity taxation and cross‐border shopping. The Scandinavian Journal of Economics, 103(4), 599–623.
  • Nielsen, S. B. (2002). Cross-border shopping from small to large countries. Economics Letters, 77(3), 309–313.
  • Ohsawa, Y. (1999). Cross-border shopping and commodity tax competition among governments. Regional Science and Urban Economics, 29(1), 33–51.
  • Ohsawa, Y. (2003). A spatial tax harmonization model. European Economic Review, 47(3), 443–459.
  • Ohsawa, Y., & Koshizuka, T. (2003). Two‐dimensional fiscal competition. Journal of Economic Geography, 3(3), 275–287.
  • Poterba, J. M., & Rueben, K. S. (2001). Fiscal news, state budget rules, and tax-exempt bond yields. Journal of Urban Economics, 50(3), 537–562.
  • Rogers, C. L. (2004). Local option sales tax (LOST) policy on the urban fringe. Journal of Regional Analysis and Policy, 34(1), 25–50.
  • Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. The Stata Journal, 9(1), 86–136.
  • Rork, J. C. (2003). Coveting thy neighbors’ taxation. National Tax Journal, 56(4), 775–787.
  • Rork, J. C., & Wagner, G. A. (2008). Do regions matter in interjurisdictional competition? Evidence from state taxation. Economics Letters, 101(2), 116–118.
  • Sjoquist, D. L., & Stoycheva, R. (2012). Local revenue Diversification: User charges, sales taxes, and income taxes The Oxford handbook of state and local government finance (pp. 429–462). Oxford, UK: Oxford University Press.
  • Sjoquist, D. D., & Stoycheva, R. (2012). Local revenue diversification: User charges, sales taxes, and income taxes. In Ebel, R. D., & Petersen, J. E. (Eds.), The Oxford Handbook of State and Local Government Finance (pp. 429–462). Oxford, UK: Oxford University Press.
  • U.S. Bureau of Economic Analysis. (2014). Regional economic accounts. Retrieved from http://www.bea.gov/regional/index.htm
  • U.S. Census Bureau. (2010). State & local government finance. Retrieved from http://www.census.gov/govs/local/
  • U.S. Census Bureau. (2011). Metropolitan and micropolitan: historical statistical area delineations. Retrieved from http://www.census.gov/population/metro/data/pastmetro.html
  • U.S. Census Bureau. (2014). Population estimates: Historical data. Retrieved from https://www.census.gov/popest/data/historical/index.html
  • Wrede, M. (2000). Shared tax sources and public expenditures. International Tax and Public Finance, 7(2), 163–175.
  • Zhao, Z. J., & Hou, Y. (2008). Local option sales taxes and fiscal disparity: The case of georgia counties. Public Budgeting & Finance, 28(1), 39–57.
  • Zodrow, G. R., & Mieszkowski, P. (1986). Pigou, Tiebout, property taxation, and the underprovision of local public goods. Journal of Urban Economics, 19(3), 356–370.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.