Vertical externalities in tax setting: evidence from gasoline and cigarettes Export

@article{citeulike:150506, abstract = {A common feature of federal systems is that tax bases are joint property. Consequently, state and federal tax setting decisions are interdependent. Our aim here is to put forward a rudimentary theoretical analysis of this phenomenon, and to use the theory as a framework for econometrically estimating the magnitude of the responses. We find that when the federal government increases taxes, there is a significant positive response of state taxes. For example, a 10-cent per gallon increase in the federal tax rate on gasoline leads to a 3.2-cent increase in the state tax rate.}, author = {Besley, Timothy J. and Rosen, Harvey S.}, citeulike-article-id = {150506}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/S0047-2727(98)00041-3}, citeulike-linkout-1 = {http://www.sciencedirect.com/science/article/B6V76-3V97WHM-3/2/42855566c43d482861026ded0a896127}, day = {01}, doi = {10.1016/S0047-2727(98)00041-3}, journal = {Journal of Public Economics}, keywords = {aarpubec, public\_economics, taxation}, month = {December}, number = {3}, pages = {383--398}, posted-at = {2005-04-06 20:44:03}, priority = {2}, title = {Vertical externalities in tax setting: evidence from gasoline and cigarettes}, url = {http://dx.doi.org/10.1016/S0047-2727(98)00041-3}, volume = {70}, year = {1998} }

TY - JOUR ID - citeulike:150506 L3 - citeulike-article-id:150506 N2 - A common feature of federal systems is that tax bases are joint property. Consequently, state and federal tax setting decisions are interdependent. Our aim here is to put forward a rudimentary theoretical analysis of this phenomenon, and to use the theory as a framework for econometrically estimating the magnitude of the responses. We find that when the federal government increases taxes, there is a significant positive response of state taxes. For example, a 10-cent per gallon increase in the federal tax rate on gasoline leads to a 3.2-cent increase in the state tax rate. IS - 3 JF - Journal of Public Economics EP - 398 TI - Vertical externalities in tax setting: evidence from gasoline and cigarettes VL - 70 SP - 383 KW - aarpubec KW - public_economics KW - taxation AU - Besley, Timothy AU - Rosen, Harvey PY - 1998/12/01/ UR - http://dx.doi.org/10.1016/S0047-2727(98)00041-3 ER -