Upjohn Institute working paper ; 12-185
Economic Development Quarterly 28(4): 314-327 (2014) under title Simulating the Effects of the Tax Credit Program of the Michigan Economic Growth Authority on Job Creation and Fiscal Benefits
This paper simulates job and fiscal impacts of Michigan’s MEGA tax credit program for job creation. Under plausible assumptions about how such credits affect business location decisions, the net costs per job created of the MEGA program are simulated to be of modest size. The job creation impacts of MEGA are simulated to be considerably larger than devoting similar dollar resources to general business tax cuts. The simulation methodology developed here is applicable to incentives in other states.
ECONOMIC DEVELOPMENT; Local labor markets; Regional policy and planning; Business and tax incentives; Michigan studies
Bartik, Timothy J., and George Erickcek. 2012. "Simulating the Effects of Michigan's MEGA Tax Credit Program on Job Creation and Fiscal Benefits." Upjohn Institute Working Paper 12-185. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research.