A Retail Sales / Sales Tax Paradox

Small communities experiencing slow to negative growth sometimes increase their local sales tax rate in order to maintain or expand public services. A cross-sectional, time series model is used to investigate possible unintended consequences. Negative elasticities are found for tax rates above the norm, resulting in reduced retail trade.


Issue Date:
2001-01
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/92071
PURL Identifier:
http://purl.umn.edu/92071
Total Pages:
14
JEL Codes:
Q00; R51
Series Statement:
AEP
0101




 Record created 2017-04-01, last modified 2020-10-28

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