Another look at tax policy and state economic growth: The long-run and short-run of it

- I use a spatial Durbin model to estimate the short and long run effects of taxes on state economic growth.
- Data for 48 contiguous US States.
- Taxes have negative short and long run direct, spillover, and total effects on state economic growth.

I use a spatial Durbin model to estimate the effects of taxes on state economic growth. Results indicate that taxes have negative short-run and long-run own-state and spatial spillover effects on state growth.