Arbeitspapier
Regional effects of federal tax shocks
This paper studies regional output asymmetries following U.S. federal tax shocks. We estimate a vector autoregressive model for each U.S. state, utilizing the exogenous tax shock series recently proposed by Romer and Romer (2010) and find considerable variations: estimated output multipliers lie between -0.2 in Utah and -3.3 in Hawaii. Statistically, the difference between state and national output effect is significant in about half the U.S. states. Analyzing the determinants of differences in the magnitude of regional tax multipliers suggests that industry composition of output and sociodemographic characteristics help explain the observed asymmetry across U.S. states in the transmission of federal tax policy.
- Language
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Englisch
- Bibliographic citation
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Series: MAGKS Joint Discussion Paper Series in Economics ; No. 17-2012
- Classification
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Wirtschaft
Business Fluctuations; Cycles
Fiscal Policy
Taxation, Subsidies, and Revenue: General
General Regional Economics (includes Regional Data)
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- Subject
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Fiscal Policy
Tax Policy
Narrative Approach
U.S. States
Regional Effects
Asymmetries in Fiscal Policy Transmission
Steuerpolitik
Schock
Regionale Inzidenz
Teilstaat
USA
- Event
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Geistige Schöpfung
- (who)
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Hayo, Bernd
Uhl, Matthias
- Event
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Veröffentlichung
- (who)
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Philipps-University Marburg, Faculty of Business Administration and Economics
- (where)
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Marburg
- (when)
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2012
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Hayo, Bernd
- Uhl, Matthias
- Philipps-University Marburg, Faculty of Business Administration and Economics
Time of origin
- 2012