Strategic Interaction in Tax Policies Among States

Resource Type
Dataset : survey data
  • Hernandez-Murillo, Ruben (Federal Reserve Bank of St. Louis)
Other Title
  • Version 1 (Subtitle)
Publication Date
Free Keywords
capital gains; state taxes; tax rates
  • Abstract

    Competition among governments differs in several respects from competition among private agents, in terms of both positive and normative implications. In this article the investigators test empirically for strategic interaction among states in the United States regarding the determination of tax rates on capital income using spatial econometric methods. They find that states have a positively sloped reaction function to the tax policies of rival states. This has important implications for the comparative statistics of the equilibrium configuration of tax rates, because changes in local exogenous variables have cascading effects into competing states' tax-setting policies. They also find that a state's size has a positive effect on tax rates.
  • Table of Contents


    • DS1: Dataset
Geographic Coverage
  • United States
Collection Mode
  • (1) The file submitted is the zip file, (2) These data are part of ICPSR's Publication-Related Archive and are distributed exactly as they arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.

This study is freely available to the general public via web download.
Alternative Identifiers
  • 1281 (Type: ICPSR Study Number)
  • Hernandez-Murillo, Ruben. Strategic interaction in tax policies among states. Federal Reserve Bank of St. Louis Review.85, (3), 47-56.2003.

Update Metadata: 2015-08-05 | Issue Number: 6 | Registration Date: 2015-06-15