Abstract

W HAT EFFECTS, if any, do state taxing and spending policies have on rates of economic development in the states? Do state individual or corporate tax rates or total tax burdens have any identifiable, independent effects on economic growth? Do patterns of state spending for education, highways, welfare and health, or even the redistributional effects of state taxing and spending, have any identifiable, independent effects on economic growth? Or are economic growth rates solely a product of climate, natural resources, geographic location, existing capital investment, and historical patterns of industrial development?

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