Geography plays a prominent role in many problems in development economics-directly in analyses of the spatial distribution of important variables like poverty and productivity, and indirectly through the role of local spillovers in economic growth. Empirical work on these topics is complicated...

We study state taxes as a potential source of spatial misallocation in the United States. We build a spatial general equilibrium framework that incorporates salient features of the U.S. state tax system, and use changes in state tax rates between 1980 and 2010 to estimate the model parameters...