The impact of state tax and expenditure packages on state economic growth

The influence of taxes, expenditures and economic development policies upon the rate of growth in the tax base, as measured by both total state personal income and population, was examined for the 48 contiguous states from 1974 through 1991. This was done to establish whether a mobility model operates between states, in which taxpayers vote with their feet. Additional variables were added to the equation to test the influence of competing explanations upon the rate of growth in state economies.