THE LONG-RUN ECONOMIC-IMPACTS OF FEDERAL, STATE, AND LOCAL FISCAL-POLICIES IN METROPOLITAN-AREAS

This paper uses new estimates of metropolitan factor demand and output supply functions to study how federal, state, and local fiscal polici es affect metropolitan economies. We illustrate our work with findings for ten metropolitan areas in five states for changes in state corpor ate income taxes, local property taxes, the federal corporate income t ax, an investment tax credit, interest rates, public capital stocks, o utput prices, and tax and regulatory policies affecting gross wages. I t is clear from these simulations that a policy that is nominally the same everywhere will have repercussions that vary widely across region s and cities.