Working Papers

  1. 2014

    Interjurisdictional Competition and Location Decisions of Firms. Hernández-Murillo, Rubén. 2014. No. 2014-036A. Federal Reserve Bank of St. Louis. http://research.stlouisfed.org/wp/2014/2014-036.pdf.

    Abstract:

    We examine the welfare properties of alternative regimes of interjurisdictional competition for heterogeneous mobile firms. Firms differ not only in terms of the degree of mobility across jurisdictions but also in terms of productivity. Alternative taxation regimes represent restraints on the discretionary powers of taxation of local governments. We find that average welfare is higher under discretionary and more efficient taxation regimes (in the sense of minimizing dead-weight losses from distortionary taxation) when firms are highly mobile. In this situation, further limiting competition by imposing a system of non-discretionary instruments can reduce average welfare by reducing the efficiency of the local governments at raising and allocating public funds. When firms face high moving costs, on the other hand, switching to a non-discretionary and less efficient taxation regime may increase welfare by preventing local governments from engaging in excessive redistribution of resources.

    BibTeX entry:

    @techreport{fedlwp2014-036,
      title = {Interjurisdictional Competition and Location Decisions of Firms},
      author = {Hern{\'a}ndez-Murillo, Rub{\'e}n},
      institution = {Federal Reserve Bank of St. Louis},
      year = {2014},
      number = {No. 2014-036A},
      pubtype = {WP},
      url = {http://research.stlouisfed.org/wp/2014/2014-036.pdf}
    }
    

    Links to file:

  2. 2011

    The Effect of Neighborhood Spillovers on Mortgage Selection. Hernández-Murillo, Rubén, Alvin D. Murphy, and Rajdeep Sengupta. 2011. No. 2011-036B. Federal Reserve Bank of St. Louis. http://research.stlouisfed.org/wp/2011/2011-036.pdf.

    BibTeX entry:

    @techreport{fedlwp2011-036,
      title = {The Effect of Neighborhood Spillovers on Mortgage Selection},
      author = {Hern{\'a}ndez-Murillo, Rub{\'e}n and Murphy, Alvin D. and Sengupta, Rajdeep},
      institution = {Federal Reserve Bank of St. Louis},
      year = {2011},
      number = {No. 2011-036B},
      pubtype = {WP},
      url = {http://research.stlouisfed.org/wp/2011/2011-036.pdf}
    }
    

    Links to file:

  3. 2003

    Spatial Probit and the Geographic Patterns of State Lotteries. Coughlin, Cletus C., Thomas A. Garrett, and Rubén Hernández-Murillo. 2003. No. 2003-042B. Federal Reserve Bank of St. Louis. https://doi.org/10.20955/wp.2003.042.

    Abstract:

    We implement a spatial probit model to differentiate states with a lottery from those without a lottery. Our analysis extends the basic spatial probit model by allowing spatial dependence to vary across geographic regions. We also separate the spatial effects of neighbors versus non-neighbors. The methodology provides consistent and efficient coefficient estimation in light of the simultaneity in spatial dependence. We find evidence of spatial dependence and spatial heterogeneity in lottery usage, and we find that spatial patterns differ significantly by geographic region. The importance of spatial dependence in state lottery usage suggests the need to consider spatial effects in empirical models examining the use of any policy tool by subnational governmental units.

    BibTeX entry:

    @techreport{fedlwp2003-042b,
      title = {Spatial Probit and the Geographic Patterns of State Lotteries},
      author = {Coughlin, Cletus C. and Garrett, Thomas A. and Hern{\'a}ndez-Murillo, Rub{\'e}n},
      institution = {Federal Reserve Bank of St. Louis},
      year = {2003},
      number = {No. 2003-042B},
      pubtype = {WP},
      url = {https://doi.org/10.20955/wp.2003.042}
    }
    

    Links to file: