Title
State Economic Development Policies and Incentives
Project Dates
10/31/2016 -
Description
State and local economic development agencies offer tax incentives regularly despite a lack of rigorous research on their effectiveness. This project will support thorough and rigorous research on incentives and will support the development of several resources that may be used by agencies to estimate the impacts of incentives they may offer. The research analyses to be undertaken will result in three papers. The first paper will describe and analyze the variation across states and industries of the incentives provided in a unique database created under a previous agreement with Pew that contains data on incentives over the period from 1990 to 2015 in 33 states and 45 industries. The second paper will describe and explain the use of a revised version of a previously developed simulation model that allows state policymakers to estimate how a given package of incentives for a particular industry that has a particular schedule will affect the income of different income groups in the local economy. The third paper will provide empirical estimates of the multiplier effects of industries that are especially important to local economies and labor markets.
Besides the research activities, Institute staff members will develop a Manual on state economic development incentives and will provide technical advice to states that will include (but not be limited to): advice on improving state data systems for incentive evaluations; methodologies for incentives evaluation; and requests for proposals for incentives evaluations.
Sponsorship
Pew Charitable Trusts
Subject Area
ECONOMIC DEVELOPMENT; Local labor markets; Regional policy and planning; Business and tax incentives
Publications
Who Benefits From Economic Development Incentives? How Incentive Effects on Local Incomes and the Income Distribution Vary with Different Assumptions about Incentive Policy and the Local Economy, Executive Summary: Economic Development Incentives: Who Benefits? Who Pays the Costs? How Can They Be Improved? is also available as a separate file. Timothy J. Bartik, Upjohn Institute Technical Report No. 18-034 (2018)
Improving Economic Development Incentives, Timothy J. Bartik (2018) Upjohn Institute Policy Brief
A New Panel Database on Business Incentives for Economic Development Offered by State and Local Governments in the United States, Timothy J. Bartik (2017) Report
Appendices to: A New Panel Database on Business Incentives for Economic Development Offered by State and Local Governments in the United States, Timothy J. Bartik (2017)
A New Business Incentives Database: Implications for Michigan, Timothy J. Bartik (2017) Testimony
A New Business Incentives Database, Timothy J. Bartik (2017) Presentation
Better Incentives Data Can Inform Both Research and Policy, Timothy J. Bartik (2017) Employment Research 24(2):1-4.
New Evidence on State Fiscal Multipliers: Implications for State Policies
Timothy J. Bartik. Upjohn Institute Working Paper 17-275 (2017)
A New Business Incentives Database, Timothy J. Bartik, Presentation, November 3, (2017)
A New Business Incentives Database, Timothy J. Bartik, Presentation, November 17, (2017)