LOST Stability? Consumption Taxes and the Cyclical Variability of State and Local Revenues

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dc.creator Hou, Yilin
dc.creator Seligman, Jason S.
dc.date.accessioned 2010-09-21T22:57:20Z
dc.date.available 2010-09-21T22:57:20Z
dc.date.issued 2010-09
dc.identifier.other 2010-002
dc.identifier.uri http://hdl.handle.net/1811/46881
dc.description.abstract States and localities continue moving towards consumption taxes. Georgia’s local governments displace a portion of their property tax receipts with revenue from the Local Option Sales Tax. This paper employs a panel dataset of Georgia counties across two economic cycles to examine the effects of consumption taxes on the long- and short-run volatility of local own-source revenues. We offer a mean-variance approach for considering correct revenue portfolio shares across tax-instruments. Holding revenues constant we find that permanent substitution towards a consumption tax amplifies variability of own-source revenues, implying that consumption taxes are overweighed in current revenue portfolios. en_US
dc.language.iso en_US en_US
dc.publisher John Glenn School of Public Affairs en_US
dc.relation.ispartofseries John Glenn School of Public Affairs. Working Paper Series. September 2010 en_US
dc.subject state government en_US
dc.subject local government en_US
dc.subject own-source revenue en_US
dc.subject volatility en_US
dc.subject cyclical variability en_US
dc.title LOST Stability? Consumption Taxes and the Cyclical Variability of State and Local Revenues en_US
dc.type Working Paper en_US
dc.rights.cc Attribution-NonCommercial-NoDerivs 3.0 Unported en_US
dc.rights.ccuri http://creativecommons.org/licenses/by-nc-nd/3.0/ en_US
Attribution-NonCommercial-NoDerivs 3.0 Unported This item is licensed under a Creative Commons License:
Attribution-NonCommercial-NoDerivs 3.0 Unported