State-local sales tax, spillover, and economic activity

Examining county governments in the US

Bibliographic Data

ID6302566
AuthorsJongmin Shon (0000-0002-9148-0286, Rutgers, the State University of New Jersey, corresponding author)
Year2017
Volume43
Issue3
Pages429-450
Publication date2017-05-04
Open AccessNo
TypeARTICLE
VenueLocal Government Studies (JOURNAL)
Journal identifiersISSN: 0300-3930 • E-ISSN: 1743-9388
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/03003930.2017.1300148
OpenAlexW2598454288
LanguageEN
Citations received1
References cited40

The reliance on sales taxation has increased in both states and counties. This study aggregated county-level data and empirically explored the associations between state-local sales taxes and economic activity by industry types in county governments for the period of 1990–2013. The results revealed negative associations of sales tax rates with economic activity, especially in the manufacturing industry. Further, the findings provided the spatial dependence of economic activity across counties as a form of possible spillover. This study suggests that policymakers should pay attention to how the manufacturing and retail industries respond to any changes in sales tax rates for business activity

Ad valorem tax · Business · Economics · Macroeconomics · Public economics · Retail sales · Sales tax · Spillover effect · State (computer science · Tax reform · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Spatial and Panel Data Analysis · Marketing

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