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Why Do Interstate Consumption Patterns Differ?

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  • Robert Kirk

    (Indiana University-Purdue University at Indianapolis)

Abstract

The credibility that can be attached to information produced by regional analysts (i.e., export base and input-output multipliers), depends, in part, on the reasonableness of underlying assumptions. One of the assumptions is the uniformity of consumption patterns. Are consumption patterns uniform? The degree of spatial variation in consumption patterns in 1982 and 1987 at the state level is measured. An OLS regression model is specified to identify determinants of interstate variation in consumption. The empirical results indicate that in addition to variation in disposable income per capita, the age distribution of the population and tax effort are important determinants. Implications for state and local tax policy and economic development strategies are considered.

Suggested Citation

  • Robert Kirk, 1991. "Why Do Interstate Consumption Patterns Differ?," The Review of Regional Studies, Southern Regional Science Association, vol. 21(2), pages 171-183, Summer.
    • Handle: RePEc:rre:publsh:v21:y:1991:i:2:p:171-183
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    References listed on IDEAS

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    1. Frank Giarratani, 1990. "Summary Comments," International Regional Science Review, , vol. 13(1-2), pages 221-224, April.
    2. Richard S. Conway Jr., 1990. "The Washington Projection and Simulation Model: A Regional Interindustry Econometric Model," International Regional Science Review, , vol. 13(1-2), pages 141-165, April.
    3. Sharon M. Brucker & Steven E. Hastings & William R. Latham III, 1990. "The Variation of Estimated Impacts from Five Regional Input-Output Models," International Regional Science Review, , vol. 13(1-2), pages 119-139, April.
    4. Philip J. Bourque, 1990. "Regional Multipliers: WAIO vs. RIMS," International Regional Science Review, , vol. 13(1-2), pages 87-98, April.
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    Cited by:

    1. Brox, James A., 2003. "The impact of free trade with the United States on the pattern of Canadian consumer spending and savings," The North American Journal of Economics and Finance, Elsevier, vol. 14(1), pages 69-87, March.

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