Heterogeneous vertical tax externalities and macroeconomic effects of federal tax changes: the role of fiscal advantage
(2019)
Journal Article
Perez-Sebastian, F., Raveh, O., & Reingewertz, Y. (2019). Heterogeneous vertical tax externalities and macroeconomic effects of federal tax changes: the role of fiscal advantage. Journal of urban economics, 112, 85-110. https://doi.org/10.1016/j.jue.2019.06.003
How do state tax rates respond to federal tax shocks? This paper presents a novel mechanism of heterogeneous vertical tax externalities across state-levels of fiscal advantage, showing that tax increases can be expansionary even without their reinves... Read More about Heterogeneous vertical tax externalities and macroeconomic effects of federal tax changes: the role of fiscal advantage.