TY  - JOUR
AU  - Feenberg,Daniel R.
AU  - Rosen,Harvey S.
TI  - Tax Structure and Public Sector Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2020
PY  - 1987
Y2  - October 1987
UR  - http://www.nber.org/papers/w2020
L1  - http://www.nber.org/papers/w2020.pdf
N1  - Author contact info:
Daniel R. Feenberg
National Bureau of Economic Research
1050 Massachusetts Avenue
Cambridge, MA 02138
Tel: 617/588-0343
Fax: 617/868-2742
E-Mail: feenberg@nber.org

Harvey S. Rosen
Department of Economics
Fisher Hall
Princeton University
Princeton, NJ 08544-1021
Tel: 609/258-4022
Fax: 609/258-6419
E-Mail: HSR@princeton.edu
M2  - featured in NBER digest on 1986-12-01
AB  - It has been hypothesized that a jurisdiction's tax structure exerts an independent 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.
ER  -