Local Government Tax Policy: Measuring the Efficiency of New York City's Tax Mix, FYs 1984-1998 |
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| Authors: | Janine Berg John Tepper Marlin & Farid Heydarpour |
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| Institution: | Office of the Comptroller, The City of New York |
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| Abstract: | This article applies the Markowitz portfolio model to New York City's tax mix to determine whether it is 'mix-efficient,' in the sense that the portfolio minimizes volatility for given levels of growth. The results indicate that New York City's tax-revenue portfolio is very close to being mix-efficient. The analysis also extends the Markowitz portfolio model to consider the impact on growth and volatility of adopting a tax-equity constraint. |
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