Year: 2015
Type: dissertation
Study design: Observational Study
Abstract: After declining dramatically during the Great Recession, consumer spending has experienced a lackluster recovery. This recovery may have been hindered by state-level tax increases. Using quarterly household-level data from the Bureau of Labor Statistics' Consumer Expenditure Survey, this paper examines the relationship between California's 2012 sales tax increase and consumer spending after the Great Recession. I identify the impact of this legislation using a difference-in-differences approach that compares changes in the consumption patterns of California and Florida residents. My results are robust to several specifications and provide no evidence of a relationship between California's sales tax increase and consumer spending.
Author: Stephanie Landry
Language: English
Topic: Economic and Fiscal Studies
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2294364593