IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v7y1979i2p238-247.html
   My bibliography  Save this article

Tax Rate Changes and the Specification of the Tax Equation

Author

Listed:
  • James A. Richardson

    (Louisiana State University, Baton Rouge)

  • Loren C. Scott

    (Louisiana State University, Baton Rouge)

Abstract

Various methods have been used to incorporate tax rate changes into the tax equation. Some economists, building on the early work by Groves and Kahn, convert all tax data to reflect the same tax rate and tax base before estimating a tax equation, while, more recently, Singer and others have used additive dummy variables in allowing for tax rate changes. In this paper a theoretical model showing that changes in tax rates affect both the slope and the intercept of the tax equation is developed. Empirical work, based on the fiscal history of Louisiana, is then presented to support the implications of the theoretical model.

Suggested Citation

  • James A. Richardson & Loren C. Scott, 1979. "Tax Rate Changes and the Specification of the Tax Equation," Public Finance Review, , vol. 7(2), pages 238-247, April.
  • Handle: RePEc:sae:pubfin:v:7:y:1979:i:2:p:238-247
    DOI: 10.1177/109114217900700208
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114217900700208
    Download Restriction: no

    File URL: https://libkey.io/10.1177/109114217900700208?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Adams, F Gerard & Brooking, Carl G & Glickman, Norman J, 1975. "On the Specification and Simulation of a Regional Econometric Model: A Model of Mississippi," The Review of Economics and Statistics, MIT Press, vol. 57(3), pages 286-298, August.
    2. Singer, Neil M, 1970. "Estimating State Income-Tax Revenues: A New Approach," The Review of Economics and Statistics, MIT Press, vol. 52(4), pages 427-433, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guisan, M.C. & Frias, I., 1995. "An Interregional Econometric Model for Market Services Employment in 120 EEC Regions," Faculty of Economics 01, Universidad de Santiago de Compostela, Faculty of Economics, Applied Econometric and Quantitative Studies.
    2. Paul A. Anderson, 1979. "A test of the exogeneity of national variables in a regional econometric model," Working Papers 124, Federal Reserve Bank of Minneapolis.
    3. Robert E. Berney & Bernard H. Frerichs, 1973. "Income Elasticities for State Tax Revenues: Techniques of Estimation and Their Usefulness for Forecasting," Public Finance Review, , vol. 1(4), pages 409-425, October.
    4. Yesim Kustepeli & Onur Sapci, 2006. "Personal Income Tax Elasticity in Turkey: 1975-2005," Discussion Paper Series 06/01, Dokuz Eylül University, Faculty of Business, Department of Economics, revised 11 Jul 2006.
    5. William F. Fox & Kenneth E. Quindry, 1984. "State and Local Government Fiscal Constraints: Public Sector and Private Sector Effects," Public Finance Review, , vol. 12(4), pages 425-456, October.
    6. Harry W. Richardson, 1978. "The State of Regional Economics: A Survey Article," International Regional Science Review, , vol. 3(1), pages 1-48, October.
    7. Jacob De Rooy, 1982. "Local Taxes and Personal Income: an Impact Analysis," Public Finance Review, , vol. 10(4), pages 457-478, October.
    8. Chong K. Liew & Kwangok Kim, 1980. "Tax Reforms With the Oklahoma Tax Model," Public Finance Review, , vol. 8(1), pages 115-128, January.
    9. Carol A. Taylor, 1982. "Demographic Disaggregation in the Construction of Regional Econometric Models: A Statistical Evaluation," International Regional Science Review, , vol. 7(1), pages 25-51, May.
    10. Andrew M. Isserman, 1980. "Estimating Export Activity in a Regional Economy: A Theoretical and Empirical Analysis of Alternative Methods," International Regional Science Review, , vol. 5(2), pages 155-184, August.
    11. David M. Reaume, 1978. "Forecasting State Income Tax Collections: A New Approach," Public Finance Review, , vol. 6(1), pages 67-91, January.
    12. Guisan, M.Carmen & Aguayo, Eva, 1996. "Impacto de la inversion industrial sobre el empleo de las regiones españolas en el periodo 1976-95," Economic Development 10, University of Santiago de Compostela. Faculty of Economics and Business. Econometrics..
    13. Max E. Jerrell & James M. Morgan, 1988. "Modeling Labor Demand in a State Econometric Model," The Review of Regional Studies, Southern Regional Science Association, vol. 18(3), pages 31-40, Fall.
    14. Charles B. Garrison & Hui S. Chang, 1979. "The Effect of Monetary and Fiscal Policies on Regional Business Cycles," International Regional Science Review, , vol. 4(2), pages 167-180, December.
    15. James R. Schmidt & Scott A. Loseke, 1990. "Preliminary Estimates of Gross State Product," The Review of Regional Studies, Southern Regional Science Association, vol. 20(2), pages 15-23, Spring.
    16. Ahmed, Vaqar, 2006. "Regional economic modelling: evaluating existing methods and models for constructing an Irish prototype," MPRA Paper 7650, University Library of Munich, Germany.
    17. M.S. Deepak & Carol Taylor West & Thomas H. Spreen, 2001. "Local Government Portfolios and Regional Growth: Some Combined Dynamic CGE/Optimal Control Results," Journal of Regional Science, Wiley Blackwell, vol. 41(2), pages 219-254, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:7:y:1979:i:2:p:238-247. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.