NEXUS, THROWBACKS, AND THE WEIGHTING GAME
 

 

Kelly D. Edmiston
Senior Economist
Community Affairs Department
Federal Reserve Bank of Kansas City
925 Grand Boulevard
Kansas City, MO 64198-0001
Tel: (816) 881-2004
Fax: (816) 881-2704
E-Mail: kelly.edmiston@kc.frb.org

December, 2004

 

 

Abstract

This paper modifies a model proposed by Anand and Sansing (2000) to explain why states have chosen different formulas for corporate income apportionment.  I demonstrate that nexus assumptions and allocation rules can have significant effects on the outcomes of the model, and are important considerations in analyzing the impetus for and effects of apportionment competition.

 
JEL: H25, H73

 

 
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