The Impact of State and Local Taxes on Growth Using Improved Tax Measures

Project Dates

03/01/2008 - 02/28/2010


In collaboration with Alan Peters and Peter Fisher of the University of Iowa, this research project provided important new evidence on a long-standing controversy in academic and public policy circles: whether tax incentives are a cost-effective means of stimulating state economic growth. The research used a superior measure of the crucial explanatory variable—state and local taxes on business—and tested the sensitivity of the results to the kind of tax measure used. This project refocused scholarly debate on replicable findings about the impact of state and local business taxes on economic growth. The results were disseminated to the economic development policy community for their use in evaluation of state and local tax and development policy.


The Impact of Marginal Business Taxes on State Manufacturing, Richard Funderburg, Timothy J. Bartik, Alan H. Peters, Peter S. Fisher. Journal of Regional Science, 53(4)(2013)


Fastlane Software

Subject Area

ECONOMIC DEVELOPMENT; Regional policy and planning