The sales tax shows wide variation across states. Rates differ, some states allow local options, and the base can vary dramatically. Consumer items like food are often afforded preferential treatment, and business purchases like manufacturing machinery are exempt in some states. There is no...

This article contributes to a small body of literature that examines empirically the factors affecting the structure of state income taxes. We assume vote-maximizing politicians who are potentially influenced by information spillovers from other states in the spirit of yardstick competition. A...

As substate policy makers design economic development strategies and respond to structural changes in their economic base, it is important to understand effects on the local sales tax. Local sales taxes are modeled here as arising from three sources: resident demand, taxable business-to-business...

Decentralized systems of government finance give rise to fiscal disparities due to interjurisdictional variations in tax bases and expenditure needs. Intergovernmental aid is used to address such disparities. This article explores changes in local tax capacity and intergovernmental aid resulting...

The determinants of school choice have significant implications for a variety of public policies including the impact of school vouchers. This article presents a conceptual and empirical model of individual-level school choice over public in-district and transfer schooling, religious private and...