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Articles 1 - 27 of 27
Full-Text Articles in Social and Behavioral Sciences
Scoring Soar, Timothy J. Bartik
Scoring Soar, Timothy J. Bartik
Upjohn Institute Policy Papers
This paper estimates the benefits and costs of the incentive package provided to the proposed Ford battery plant in Marshall, Michigan. This project, announced in February 2023, involves a state and local business incentive package whose undiscounted value is $1.7 billion, and which is awarded to a plant that will eventually create 2,500 permanent jobs. The incentive package is analyzed using the Bartik Benefit-Cost Model of Incentives. The model’s estimates suggest that the incentive package has economic benefits whose present value is over 1.8 times the project’s incentive costs. Most of these benefits are higher earnings per capita for Michigan …
Benefits And Costs Of An Incentive Project Or Program For State Residents: A Model For Flexible Use In Any State, Timothy J. Bartik
Benefits And Costs Of An Incentive Project Or Program For State Residents: A Model For Flexible Use In Any State, Timothy J. Bartik
Presentations
No abstract provided.
An Introduction To The Bartik Benefit-Cost Model Of Business Incentives, Timothy J. Bartik
An Introduction To The Bartik Benefit-Cost Model Of Business Incentives, Timothy J. Bartik
Reports
This short report provides an introduction to a new model of the benefits and costs of business incentives to promote state economic development. This model provides potential users—anyone interested in evaluating an incentive project or incentive program in their state—with a model that can be used for practical evaluation purposes, such as deciding whether or not a project should be undertaken, whether or not to expand or terminate a current incentive program, or how an incentive program could be improved by reforms to have higher net benefits. What is most distinctive about the model is that it focuses on how …
Bartik Benefit-Cost Model Of Business Incentives: A User’S Guide, Timothy J. Bartik
Bartik Benefit-Cost Model Of Business Incentives: A User’S Guide, Timothy J. Bartik
Reports
This “user’s guide” explains a model for evaluating state or local business incentives. These incentives include tax breaks provided by state and local governments to business, to encourage local job growth. The model is intended to be used by state legislative audit bureaus, state and local economic development agencies, university centers for business research, economic development consulting firms, or any group that wants to evaluate an overall economic development program, or individual economic development projects. Users provide information on the incentives provided, and the incented jobs, and the model then produces estimates of the effects of the program on jobs, …
Making Sense Of Incentives: Taming Business Incentives To Promote Prosperity, Timothy J. Bartik
Making Sense Of Incentives: Taming Business Incentives To Promote Prosperity, Timothy J. Bartik
Upjohn Press
In evaluating incentives, everything depends on the details: how much in incentives it takes to truly cause a firm to locate or expand, the multiplier effects, the effects of jobs on employment rates, how jobs affect tax revenue versus public spending needs. Do benefits of incentives exceed costs? This depends on the details. This book is about those details. What magnitudes of incentive effects are plausible? How do benefits and costs vary with incentive designs? What advice can be given to evaluators? What is an ideal incentive policy? Answering these questions about incentives depends on a model of incentive effects, …
Early Childhood Education And Local Economic Development, Timothy J. Bartik
Early Childhood Education And Local Economic Development, Timothy J. Bartik
Presentations
No abstract provided.
Better Incentives Data Can Inform Both Research And Policy, Timothy J. Bartik
Better Incentives Data Can Inform Both Research And Policy, Timothy J. Bartik
Employment Research Newsletter
No abstract provided.
Job Creation Tax Credits: Still Worth Consideration?, Robert S. Chirinko, Daniel J. Wilson
Job Creation Tax Credits: Still Worth Consideration?, Robert S. Chirinko, Daniel J. Wilson
Employment Research Newsletter
No abstract provided.
What Should Michigan Be Doing To Promote Long-Run Economic Development?, Timothy J. Bartik
What Should Michigan Be Doing To Promote Long-Run Economic Development?, Timothy J. Bartik
Upjohn Institute Working Papers
This paper argues that Michigan can take cost-effective actions to significantly improve the primary state economic development goal: higher per capita income of Michigan's residents. Higher per capita income of Michigan's residents can be achieved through state policy actions that use cost-effective means to either lower the marginal costs of businesses that expand in the state, or boost the skills of state residents. In this paper, I offer eight ideas for how to lower marginal business costs and boost skills. Four of these ideas focus on lowering marginal business costs. Four other ideas focus on boosting skills. For each of …
The New Jobs Tax Credit: A Tested Way To Fight High Unemployment, Timothy J. Bartik
The New Jobs Tax Credit: A Tested Way To Fight High Unemployment, Timothy J. Bartik
Employment Research Newsletter
No abstract provided.
Why Universal Preschool Is Really A Labor Market Program, Timothy J. Bartik
Why Universal Preschool Is Really A Labor Market Program, Timothy J. Bartik
Employment Research Newsletter
No abstract provided.
The Revitalization Of Older Industrial Cities: A Review Essay Of Retooling For Growth, Timothy J. Bartik
The Revitalization Of Older Industrial Cities: A Review Essay Of Retooling For Growth, Timothy J. Bartik
Upjohn Institute Working Papers
This review essay debates the policy issues raised by the book Retooling for Growth: Building a 21st Century Economy in America's Older Industrial Areas, edited by Richard M. McGahey and Jennifer S. Vey (Brookings Institution Press, 2008). I argue that the main rationale for adopting policies to revitalize older industrial cities is to improve the per capita earnings of urban residents. Therefore, urban economic development policy should be seen as urban labor market policy. Increasing city residents' earnings requires progress on two fronts: increasing metropolitan labor demand; increasing the quantity and quality of the effective labor supply of city residents …
Economic Impact Of Businesses Assisted By Southwest Michigan First, George A. Erickcek, Randall W. Eberts
Economic Impact Of Businesses Assisted By Southwest Michigan First, George A. Erickcek, Randall W. Eberts
Reports
This report estimates the contribution to the Kalamazoo-Portage MSA's economy by businesses that have received substantial assistance from Southwest Michigan First (SMF), a private, not-for-profit economic development agency serving the greater Kalamazoo region. The report examines the trends in employment, gross regional product, and wages and salaries generated by the 105 firms that SMF staff identified as receiving substantial assistance from SMF between 2000 and 2008. The estimates extend through the year 2012 in order to capture the employment projections offered by some of the assisted firms. The study also provides upper bound estimates of the benefit-cost ratio of the …
The Economic Development Effects Of Early Childhood Programs, Timothy J. Bartik
The Economic Development Effects Of Early Childhood Programs, Timothy J. Bartik
Reports
No abstract provided.
Reining In The Competition For Capital, Ann R. Markusen Editor
Reining In The Competition For Capital, Ann R. Markusen Editor
Upjohn Press
This book explores the causes, character, and potential remedies for the growing spatial competition for capital. Its diverse group of contributors present a broad set of workable reforms including: regulation of site consultants; mandated transparency in negotiations, bids, and deals; better structured deals; performance requirements and clawbacks for subsidized firms; and adoption of united economic development budgets.
Better Deals For State And Local Economic Development, Ann R. Markusen
Better Deals For State And Local Economic Development, Ann R. Markusen
Employment Research Newsletter
No abstract provided.
Increasing The Economic Development Benefits Of Higher Education In Michigan, Timothy J. Bartik
Increasing The Economic Development Benefits Of Higher Education In Michigan, Timothy J. Bartik
Upjohn Institute Working Papers
This paper considers how a state such as Michigan can increase the economic development benefits of higher education. Research evidence suggests that higher education increases local economic development principally by increasing the quality of the local workforce, and secondarily by increasing local innovative ideas. These economic development benefits of higher education can be increased by: 1) competent management of conventional economic development programs that focus on business attraction and retention; 2) policies that focus on increasing local job skills by educating the state's residents, as opposed to attracting in-migrants; 3) policies that address specific "market failures" in how higher education …
What Makes Small Firms Grow? Finance, Human Capital, Technical Assistance, And The Business Environment In Romania, J. David Brown, John S. Earle, Dana Lup
What Makes Small Firms Grow? Finance, Human Capital, Technical Assistance, And The Business Environment In Romania, J. David Brown, John S. Earle, Dana Lup
Upjohn Institute Working Papers
Although the development of a new private sector is generally considered crucial to economic transition, there has been relatively little empirical research on the determinants of startup firm growth. This paper uses panel data techniques to analyze a survey of 297 new small enterprises in Romania containing detailed information from the startup date through 2001. We find strong evidence that access to external credit increases the growth of both employment and sales. Taxes appear to constrain growth. The data suggest that entrepreneurial skills have little independent effect on growth, once demand conditions are taken into account. The evidence for the …
Incentive Solutions, Timothy J. Bartik
Incentive Solutions, Timothy J. Bartik
Upjohn Institute Working Papers
This paper reviews the research literature relevant to economic development incentives provided by state and local governments, and recommends reforms in these incentives. I argue that the main problem with current incentive policies is that state and local governments often provide incentives that are not in the best interest of that state or local area, for example that are excessively costly per job created, or that provide jobs that do not improve the job opportunities of local residents. I suggest that reforms should be "bottom-up" rather than "top-down." Regulation of incentives by the federal government, or by international trade treaties, …
Local Economic Development Policies, Timothy J. Bartik
Local Economic Development Policies, Timothy J. Bartik
Upjohn Institute Working Papers
This chapter seeks to provide useful advice for local government policy towards economic development programs. The chapter: reviews the size and scope of local economic development programs in the United States; critically analyzes the various rationales offered for these programs; makes recommendations for what local policy should do about business attraction and incentives, business retention, new business development, high technology development, brownfield development, distressed neighborhoods, and downtowns; and discusses how local economic development programs should be organized, managed, and evaluated.
"Smart" Economic Development, George A. Erickcek
"Smart" Economic Development, George A. Erickcek
Employment Research Newsletter
No abstract provided.
Assessing Evaluation Methodologies For Performance-Based Incentives, George A. Erickcek
Assessing Evaluation Methodologies For Performance-Based Incentives, George A. Erickcek
Reports
No abstract provided.
Economic Development Strategies, Timothy J. Bartik
Economic Development Strategies, Timothy J. Bartik
Upjohn Institute Working Papers
This paper provides a guide to economic development policies for local government managers. Local economic development policies today include not only tax subsidies for branch plants, but also job training to provide workers to businesses, advice and support services for potential entrepreneurs, and extension services to help businesses modernize and export. To help local government managers, this paper suggests a number of guiding principles, including: local economic development should be pursued cooperatively across the local labor market; economic development programs should consider the quality of jobs created; tax subsidies are expensive per job created; development subsidies are more effective if …
Who Benefits From State And Local Economic Development Policies?, Timothy J. Bartik
Who Benefits From State And Local Economic Development Policies?, Timothy J. Bartik
Upjohn Press
Bartik reviews evidence on whether state and local policies affect job growth. He then presents empirical data supporting the intentions of such programs, showing that job growth may lead to a number of positive long-term effects including: lower unemployment, higher labor force participation, higher real estate values, and better occupational opportunities. He also shows that the earnings gains to disadvantaged groups outweigh the resulting increased real estate values for property owners, and concludes by saying that regional competition for jobs may actually be a benefit for the nation as a whole.
Saturn And State Economic Development, Timothy J. Bartik, Charles Becker, Steve Lake, John Bush
Saturn And State Economic Development, Timothy J. Bartik, Charles Becker, Steve Lake, John Bush
Journal Articles
No abstract provided.
Michigan's Business Tax Costs Relative To The Other Great Lakes States, Timothy L. Hunt
Michigan's Business Tax Costs Relative To The Other Great Lakes States, Timothy L. Hunt
Upjohn Press
Offers a picture of Michigan's tax costs relative to other Great Lakes states.
The Business Climate In Michigan: Wage & Tax Cost Considerations, Timothy L. Hunt
The Business Climate In Michigan: Wage & Tax Cost Considerations, Timothy L. Hunt
Upjohn Press
Uses a broad definition of "business climate" to assess the attractiveness of Michigan as a place to do business.