(-8.00) (-7.63) (-7.38) (-8.13)
Non Tax Revenues -- -0.3763 -0.4306 --
(D) (-2.98) (-3.36)
Non Tax Revenues -- -0.3784 -0.4375 --
(L) (-3.39) (-2.94)
Welfare (D) -- -- 0.6157 0.5131
(3.49) (3.14)
Welfare (L) -- -- 0.5749 0.3482
(1.84) (1.29)
Note: Regression results are derived from a regression equation
having the variable specification of column 2 of Table 3,
supplemented with the respective interaction dummy variables (cf.
the text for further details). The estimation procedure is FGLS
(weighting on groupwise heteroscedasticity) with robust VCE for
heteroscedasticity and cross-sectional correlation. The first
column reproduces previous results for comparison's sake (cf.
the next to last row of Table 4). "Non-Tax Revenues" are defined
as General Revenues minus Total Taxes divided by income. "Welfare"
is defined as Direct General Expenditures on Public Welfare divided
by income.
TABLE 9
ESTIMATION OF THE RELATIONSHIP BETWEEN TAX BURDEN AND INCOME
GROWTH USING ANNUAL DATA
(1) (2) (3)
Tax Burden 0.0016 0.0017 0.0174
(3.06) (1.11) (8.77)
Tax Burden (-1) -- -- --
Tax Burden (-2) -- -- --
Tax Burden (-3) -- -- --
Tax Burden (-4) -- -- --
LNK 0.0754 -- --
(8.84)
LNL 0.1073 -- --
(8.19)
LNN 0.0064 -- --
(5.91)
LNY_1 0.7466 -- --
(65.25)
Education 0.0034 0.0174 --
(10.38) (20.17)
Working population 0.0056 0.0288 --
(11.85) (25.28)
Nonwhite -0.0004 -0.0008 --
(-2.84) (-2.38)
Female 0.0112 -0.0014 --
(8.33) (-0.37)
Agriculture 0.0028 0.0057 --
(12.11) (11.53)
Mining -0.0005 0.0029 --
(-1.16) (4.80)
Union 0.0008 0.0049 --
(5.31) (15.24)
Diversity 0.0032 0.0039 --
(7.06) (3.17)
Other variables state fixed state fixed state fixed
effects, year effects, year effects, year
fixed effects fixed effects fixed effects
Number of observations 1440 1440 1440
[R.sup.2] 0.994 0.944 0.843
(4) (5)
Tax Burden 0.0040 0.0064
(1.16) (6.27)
Tax Burden (-1) -- -0.0025
(-1.96)
Tax Burden (-2) -- -0.0020
(-1.62)
Tax Burden (-3) -- -0.0001
(-0.11)
Tax Burden (-4) -- -0.0025
(-2.63)
LNK -- 0.0936
(9.97)
LNL -- 0.1330
(9.79)
LNN -- 0.0034
(3.29)
LNY_1 -- 0.7180
(55.54)
Education -- 0.0038
(10.62)
Working population -- 0.0055
(11.19)
Nonwhite -- -0.0001
(-1.09)
Female -- 0.0127
(8.95)
Agriculture -- 0.0015
(5.11)
Mining -- -0.0011
(-2.74)
Union -- 0.0013
(8.45)
Diversity -- 0.0017
(3.10)
Other variables - state fixed
effects, year
fixed effects
Number of observations 1440 1248
[R.sup.2] 0.448 0.993
Note: The dependent variable is the log of real Per Capita Personal
Income (1984 dollars). All equations are estimated using OLS.
t-statistics are reported in parenthesis.
COPYRIGHT 2008 National Tax
Association Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2008 Gale, Cengage Learning. All rights
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NOTE: All illustrations and photos have been removed from this article.