Abstract
We examine whether personal and business taxes are an important determinant of economic development in a metropolitan area. We estimate determinants of the location of private employment and population across the D.C. metropolitan area over the period 1969-94. After controlling for jurisdiction and time effects, we find that higher rates of two business taxes - sales and personal property - reduce annual employment growth by a significant amount. Higher levels of nonwelfare public service expenditures are estimated to increase employment growth. We do not find local property taxes to be a significant factor.
Original language | English (US) |
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Pages (from-to) | 105-122 |
Number of pages | 18 |
Journal | National Tax Journal |
Volume | 53 |
Issue number | 1 |
DOIs | |
State | Published - Mar 2000 |
ASJC Scopus subject areas
- Accounting
- Finance
- Economics and Econometrics