Degree Type

Thesis

Date of Award

2016

Degree Name

Master of Science

Department

Economics

Major

Economics

First Advisor

Georgeanne Artz

Abstract

This paper uses a regression discontinuity approach to estimate the impacts of taxes on firm entry rates between neighboring states. We utilize matched county pairs as an approximate bandwidth around the discontinuity in state policies imposed at their border. This estimation strategy controls for unobserved location specific determinants of firm entry, as well as policy responses to shocks shared across borders. We estimate this impact using a sample of 107 state-border pairs between 1999 and 2009. We add to the literature by using the large array of top marginal tax rates, including property, income, sales, corporate, capital gains, workers compensation, and unemployment insurance tax rates. This controls for joint changes in tax rates that governments may implement to accomplish policy goals. Our results indicate that

property, sales, and income taxes have the largest negative effect on firm start up rates.

DOI

https://doi.org/10.31274/etd-180810-5321

Copyright Owner

Kevin D. Duncan

Language

en

File Format

application/pdf

File Size

48 pages

Included in

Economics Commons

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