Suchergebnisse

Tax law revisions of 2004 altered the "roster depreciation allowance" enjoyed by pro sports team owners. Supporters claimed this would practically eliminate costly legal oversight by the IRS and, ultimately, increase owner tax bills. Government officials and leagues remained silent on team value impacts but outside analysts argued they would rise by 5%. We model this policy change and investigate it empirically. Supporters in Congress were absolutely correct that owner tax payments should increase but outside analysts underestimated team value increases by half. No wonder Major League Baseball and the National Football League favored the revision. (JEL D21, G38, H25, L83)

ABSTRACT
Foreign exports are claiming growing shares of US. state economic production. While growth of foreign exports is often cited as a driving force for state economic growth, little attention has been paid in prior research to the issue of Granger causality between foreign exports and economic performance at the state level. This study examines Granger causality between foreign manufacturing export growth and state manufacturing performance during the period from 1980 to 1991. Results indicate that, at the aggregate level, there is a bi‐directional Granger causal relationship between foreign exports and state manufacturing activity. Among the individual industrial sectors, results are more mixed, however, with sectors displaying either export‐led growth, reverse Granger causality, or in some instances, negative Granger causality.