Jobless Capital? The Role of Capital Subsidies

Publication Date


Grant Type

Early Career Research Award


The proposed research investigates the mechanisms behind recent estimates that suggest non-tax economic development incentives have either negative or no job creation effects. I exploit variation in structural constraints to isolate the effects of capital subsidies and investigate their influence on capital investment and sectoral composition in US counties 1972-2002. To strengthen identification, the research will also estimate effects for two important subsets of the US (continental) county panels: counties near shared state borders and counties within multi-state MSAs. The research will provide important insight into capital subsidies as a local job creation policy.

Grant Product

Jobless Capital? The Role of Capital Subsidies
Upjohn Institute working paper 15-237, 2015

Jobless capital? The role of capital subsidies
Regional Science and Urban Economics 60 (September 2016):169-79