NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

State Taxes and Spatial Misallocation

Pablo D. Fajgelbaum, Eduardo Morales, Juan Carlos Suárez Serrato, Owen M. Zidar

NBER Working Paper No. 21760
Issued in November 2015, Revised in May 2018

---- Acknowledgements ----

We are grateful to the editor and five anonymous referees for helpful comments and suggestions. We thank Costas Arkolakis, Lorenzo Caliendo, Dave Donaldson, Nirupama Rao, and Jon Vogel for their discussions of the paper. We also thank David Atkin, Arnaud Costinot, Klaus Desmet, Cecile Gaubert, David Lagakos, Enrico Moretti, Pat Kline, Andrés Rodríguez-Clare, Esteban Rossi-Hansberg, and Aleh Tsyvinski for helpful comments. Pawel Charasz, Stephanie Kestelman, Matt Panhans, Francesco Ruggieri, Prab Upadrashta, Victor Ye, and John Wieselthier provided excellent research assistance. Fajgelbaum gratefully acknowledges support from the UCLA Ziman Center. Morales thanks the University of Wisconsin-Madison and the Cowles Foundation at Yale University for their hospitality and support. Suárez Serrato gratefully acknowledges support from the Kauffman Foundation. Zidar gratefully acknowledges support from the Kathryn and Grant Swick Faculty Research Fund, Booth School of Business at the University of Chicago, and the National Science Foundation under Grant Number 1752431. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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