An Analysis of the Time to Adoption of Local Sales Taxes: A Duration Model Approach

Sjoquist, David L.; Smith, William J.; Walker, MaryBeth Beth; Wallace, Sally

doi:10.1111/j.1540-5850.2007.00867.x

An Analysis of the Time to Adoption of Local Sales Taxes: A Duration Model Approach

Public Budgeting & Finance, Vol. 27, No. 1, pp. 20-40, Spring 2007

21 Pages Posted: 8 Feb 2007

See all articles by David L. Sjoquist

William J. Smith

State University of West Georgia - Richards College of Business

Sally Wallace

Georgia State University - Department of Economics; University of Pretoria

Abstract

The timing of the decision of local governments to adopt a local sales tax is explored in a duration model with time-varying covariates. Our framework suggests a set of factors associated with the decision to adopt a local sales tax and we find empirical support for these factors. We also consider whether the adoption by one jurisdiction depends on the adoption by neighboring jurisdictions and find empirical support for interdependency of behavior.

Suggested Citation: Suggested Citation

Sjoquist, David L. and Smith, William J. and Walker, Mary Beth Beth and Wallace, Sally, An Analysis of the Time to Adoption of Local Sales Taxes: A Duration Model Approach. Public Budgeting & Finance, Vol. 27, No. 1, pp. 20-40, Spring 2007. Available at SSRN: https://ssrn.com/abstract=961958 or http://dx.doi.org/10.1111/j.1540-5850.2007.00867.x