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An Analysis of the Time to Adoption of Local Sales Taxes: A Duration Model Approach
Author(s) -
SJOQUIST DAVID L.,
SMITH WILLIAM J.,
WALKER MARY BETH,
WALLACE SALLY
Publication year - 2007
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/j.1540-5850.2007.00867.x
Subject(s) - duration (music) , interdependence , jurisdiction , set (abstract data type) , business , covariate , empirical research , economics , econometrics , computer science , statistics , art , literature , mathematics , political science , law , programming language
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.