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dc.contributor.authorFajgelbaum, Pablo D-
dc.contributor.authorMorales, Eduardo-
dc.contributor.authorSuárez Serrato, Juan Carlos-
dc.contributor.authorZidar, Owen M.-
dc.date.accessioned2020-04-02T18:10:17Z-
dc.date.available2020-04-02T18:10:17Z-
dc.date.issued2018-09-07en_US
dc.identifier.citationFajgelbaum, PD, Morales, E, Suárez Serrato, JC, Zidar, O. (2019). State Taxes and Spatial Misallocation. Review of Economic Studies, 86 (1), 333 - 376. doi:10.1093/restud/rdy050en_US
dc.identifier.issn0034-6527-
dc.identifier.urihttp://arks.princeton.edu/ark:/88435/pr1d211-
dc.description.abstract© The Author(s) 2018. We study state taxes as a potential source of spatial misallocation in the U.S.. We build a spatial general equilibrium framework that incorporates salient features of the U.S. state tax system, and use changes in state tax rates between 1980 and 2010 to estimate the model parameters that determine how worker and firm location respond to changes in state taxes. We find that heterogeneity in state tax rates leads to aggregate welfare losses. In terms of consumption equivalent units, harmonizing state taxes increases worker welfare by 0.6% if government spending is held constant, and by 1.2% if government spending responds endogenously. Harmonization of state taxes within Census regions achieves most of these gains. We also use our model to study the general equilibrium effects of recently implemented and proposed tax reforms.en_US
dc.format.extent333 - 376en_US
dc.language.isoenen_US
dc.relation.ispartofReview of Economic Studiesen_US
dc.rightsAuthor's manuscripten_US
dc.titleState Taxes and Spatial Misallocationen_US
dc.typeJournal Articleen_US
dc.identifier.doidoi:10.1093/restud/rdy050-
dc.identifier.eissn1467-937X-
pu.type.symplectichttp://www.symplectic.co.uk/publications/atom-terms/1.0/journal-articleen_US

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