Tax structure and public sector growth

Daniel R. Feenberg, Harvey S. Rosen

Research output: Contribution to journalArticlepeer-review

25 Scopus citations

Abstract

It has been hypothesized that a jurisdiction's tax structure exerts an indipendent effect upon the growth of its public sector. We test this hypothesis by examining the relationship between the growth of state general expenditure and the elasticity of tax revenues with respect to income. The work takes advantage of a very careful set of income elasticities for the personal income and sales tax systems for each state, for every year from 1978 to 1983. The main conclusion is that the data do not support the notion that the form of the tax structure exerts an independent effect on public sector growth.

Original languageEnglish (US)
Pages (from-to)185-201
Number of pages17
JournalJournal of Public Economics
Volume32
Issue number2
DOIs
StatePublished - Mar 1987

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Fingerprint Dive into the research topics of 'Tax structure and public sector growth'. Together they form a unique fingerprint.

Cite this