The influence of taxes, expenditures and economic development policies upon the rate of growth in the tax base, as measured by both total state personal income and population, was examined for the 48 contiguous states from 1974 through 1991. This was done to establish whether a mobility model operates between states, in which taxpayers vote with their feet. Additional variables were added to the equation to test the influence of competing explanations upon the rate of growth in state economies. / The results suggest taxpayers do respond to differences in taxes and expenditures between states. The overall level of state and local taxes has a significant negative influence on the rate of growth in both state income and population. The findings suggest that capital, rather than the individual utility maximizing taxpayer, is the taxpayers whose incentives are critical to explaining differences in the rate of state economic growth. The results also suggest that economic development subsidies to attract new capital have a significant positive effect on the rate of growth in state income. The results also cast serious doubts on the competing concept of convergence. This study found that when one controls for state taxes, expenditures and economic development policies, a highly significant positive relationship emerges between per capita income and growth in state income. / Source: Dissertation Abstracts International, Volume: 56-03, Section: A, page: 1121. / Major Professor: Richard Feiock. / Thesis (Ph.D.)--The Florida State University, 1995.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_77374 |
| Contributors | Trogen, Paul Clifford., Florida State University |
| Source Sets | Florida State University |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | 182 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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