Abstract
A new computable general equilibrium model is used to predict the effects of tax rate changes on employment and other macrovariables in California. The model is dynamic in accounting for both migration and investment. The relative strength of migration, labor force participation, and investment in causing tax‐rate‐decrease‐induced growth is examined. The model is used to contrast expected effects of a tax rate increase with and without migration and investment.
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More From: Industrial Relations: A Journal of Economy and Society
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