Abstract: Paper No. 13

Elderly Migration and State Fiscal Policy: Evidence from the 1990 Census Migration Flows

Karen Smith Conway and Andrew J. Houtenville

August 1998

Abstract:  The elderly's unique economic situation makes some government expenditures more attractive and some forms of taxation less burdensome than others. This research investigates whether elderly migration is affected by state fiscal policies and discusses the possible consequences, both of which likely differ between younger and older elderly. Using state-to-state migration flows, we identify which states are gaining and losing younger versus older elderly people. We then estimate the migration flows as a function of the states' amenities, cost of living, composition of government spending and alternative specifications of the tax system. We find that elderly migration is influenced by state fiscal policy.

A revised version of this paper appears in The National Tax Journal, Vol. LIV, No. 1, March 2001, pp. 103-123.  Those interested in this paper should see that version.