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The Influence of State Taxation and Regulation On Selected Bank Activities

Author

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  • William F. Fox

    (University of Tennessee)

  • Harold A. Black

    (University of Tennessee)

Abstract

The effects of state tax and regulatory policies on the location of real, financial, and portfolio choice activity of banks are investigated. The results show that banks have increased their efforts to avoid tax and regulatory policies since the 1980 Depository Institutions Deregulation and Monetary Control Act. Delaware and South Dakota have been very effective in designing policies to attract banking, but they appear to have benefited from first-mover advantages. Overall, the effects of taxes and regulations remain small, probably because the regulatory and technological environments have only recently become conducive to interstate tax-avoidance behavior.

Suggested Citation

  • William F. Fox & Harold A. Black, 1994. "The Influence of State Taxation and Regulation On Selected Bank Activities," Public Finance Review, , vol. 22(3), pages 267-290, July.
    • Handle: RePEc:sae:pubfin:v:22:y:1994:i:3:p:267-290
    DOI: 10.1177/109114219402200301
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    References listed on IDEAS

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    1. Black, Harold A & Fields, M Andrew & Schweitzer, Robert L, 1990. "Changes in Interstate Banking Laws: The Impact of Shareholder Wealth," Journal of Finance, American Finance Association, vol. 45(5), pages 1663-1671, December.
    2. William C. Hunter & Stephen G. Timme, 1989. "Does multiproduct production in large banks reduce costs?," Economic Review, Federal Reserve Bank of Atlanta, issue May, pages 2-11.
    3. Kane, Edward J, 1984. "Technological and Regulatory Forces in the Developing Fusion of Financial-Services Competition," Journal of Finance, American Finance Association, vol. 39(3), pages 759-772, July.
    4. Melitz, Jacques & Pardue, Morris, 1973. "The Demand and Supply of Commercial Bank Loans," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 5(2), pages 669-692, May.
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    Cited by:

    1. Kristoffer Milonas, 2018. "Bank Taxes, Leverage, and Risk," Journal of Financial Services Research, Springer;Western Finance Association, vol. 54(2), pages 145-177, October.
    2. Udechukwu Ojiako & Tinashe Manungo & Max Chipulu & Johnnie Johnson, 2013. "The Impact of Regulation on Risk Perception: Evidence from the Zimbabwean Banking Industry," African Development Review, African Development Bank, vol. 25(3), pages 276-288, September.
    3. Timothy J. Goodspeed, 2012. "The Incidence of Bank Regulations and Taxes on Wages: Evidence from US States," CESifo Working Paper Series 4026, CESifo.

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