Do Economic Effects Justify the Use of Fiscal Incentives?
The siting of a large, new firm is often presumed to give rise to significant economic and tax benefits to the community of location. This presumption serves as the basis for the granting of lucrative economic development incentives to footloose businesses. This article examines whether large, mobil...
| Publicado en: | Southern Economic Journal Vol. 71; no. 1; pp. 78 - 93 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Jul2004
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=13989978&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 13989978 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Jul2004 vid: 71 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 13989978 10.2307/4135311 ppf: 78 ppct: 15 formats: fmt: @attributes: type: P size: 2.1MB tig: atl: Do Economic Effects Justify the Use of Fiscal Incentives? aug: au: Fox, William F. Murray, Matthew N. affil: Department of Economics and Center for Business and Economic Research, 1000 Volume Boulevard, 100 Glocker Building, University of Tennessee, Knoxville, TN 37996-4170, USA su: Economic development Social sciences Economic policy Investments Investment policy Tax planning Theory sug: subj: Economic development Social sciences Economic policy Investments Investment Advice Miscellaneous Financial Investment Activities Research and Development in the Social Sciences and Humanities Investment policy Tax planning Theory ab: The siting of a large, new firm is often presumed to give rise to significant economic and tax benefits to the community of location. This presumption serves as the basis for the granting of lucrative economic development incentives to footloose businesses. This article examines whether large, mobile firms generate significant net benefits for the region of location. Panel data and nonrandom estimation techniques are applied to a primary database of large firms that made location decisions in the 1980s to explore the impact of location on regional economic performance. The empirical analysis explores different treatment regions (both effects within the county and the metropolitan statistical area [MSA] of location) and different control regions. The results show that large firms fail to produce significant net benefits for their host communities, calling into question the high-stakes bidding war over jobs and investment. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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