Does Tax Smoothing Differ by the Level of Government? Time Series Evidence from Canada and the United States
- ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
- Mark Strazicich Ph.D., Professor (Creator)
- Institution
- Appalachian State University (ASU )
- Web Site: https://library.appstate.edu/
Abstract: The tax smoothing theory is examined for Canada and the United States. A distinction is made
between federal and local levels of government. Mobility of taxable resources at the state and
local levels may constrain the ability of these governments to smooth tax rates. Testing is undertaken in the frequency domain to see if the cumulated periodogram of the first differenced
tax rate series differs from white noise. Testing is undertaken with and without correction for
time averaging. Results generally support tax smoothing by both federal governments and the
Canadian provinces. Tax smoothing is rejected for state and local governments.
Does Tax Smoothing Differ by the Level of Government? Time Series Evidence from Canada and the United States
PDF (Portable Document Format)
788 KB
Created on 6/12/2013
Views: 3446
Additional Information
- Publication
- Strazicich, M.C. (1997). Does Tax Smoothing Differ by the Level of Government? Time Series Evidence from Canada and the United States. Journal of Macroeconomics, 19(2): 305-326 (April 1997). Published by Elsevier (ISSN: 0164-0704). http://0-dx.doi.org.wncln.wncln.org/10.1016/S0164-0704(97)00017-7
- Language: English
- Date: 1997