Tag Archives: States

The Rise of the States: U.S. Fiscal Decentralization in the Postwar Period

Katherine Baicker, Jeffrey Clemens, and Monica Singhal have an informative paper on the rising importance of states & fiscal decentralization since the 1950s. ABSTRACT: One of the most dramatic changes in the fiscal federalism landscape during the postwar period has been the … Continue reading

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When more states look like Florida, will we spend too little on Education?

The combination of raising healthcare costs (mostly via Medicaid at the state level), pension obligations, lower employment to population ratios and thus tax revenues, balanced budget requirements, state tax competition, the reluctance to raise taxes in general and mobility concerns … Continue reading

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Coveting Thy Neighbor’s Manufacturing – Is State Tax Competition A Zero Sum Game?

Many people have been focused on state tax incentives of late. Earlier I posted about some work by Moretti and Greenstone that concludes local subsidies improve residents’ welfare (perhaps partly due to sizable employment spillovers). With that in mind, I wanted … Continue reading

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A Problem with Federalism

The job market paper of Steven Rogers entitled “Accountability in a Federal System: How Parties Perform in Office and State Legislative Elections” highlights a reason why accountability may be weak under powerful state political systems. ABSTRACT: Theories of political accountability suggest … Continue reading

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How much higher would taxes have to be to fund all state and local pension promises? ~1,400 per household per year

Robert Novy-Marx and Josh Rauh have a new NBER working paper out that suggests that filling the pension gap for state and local governments costs roughly ~1,400 per household every year.  We calculate increases in contributions required to achieve full … Continue reading

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Volatility & state tax competition – are states relying too much on income and sales taxes?

Tyler Cowen has a post today about an interesting job market paper by Nathan Seegert of U Michigan. I haven’t had a chance to read it closely but from a superficial glance, it seems that states have been relying more on sales taxes … Continue reading

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Krugman puts the concept of Fiscal Union in Perspective

Great paragraph from Paul Krugman’s oped today. Consider, for example, what would be happening to Florida right now, in the aftermath of its huge housing bubble, if the state had to come up with the money for Social Security and … Continue reading

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When the techies come to town…

The NY Times recently put out an alarmist article about the inflow of tech workers from Twitter and other startups moving into the city. While some of the concerns it raised about maintaining a vibrant and diverse neighborhood are completely … Continue reading

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