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Do Higher Land Costs for New Single-Family Housing Inhibit Economic Activity in U.S. Metropolitan Areas? Econ. Dev. Q. (IF 1.426) Pub Date : 2021-04-10 Robert W. Wassmer
The price of a new home is greater if the land to put it on costs more. In many U.S. metropolitan areas, this generates the widely acknowledged equity concern that low- to moderate-income households spend disproportionately on housing. But high residential land prices translating into high single-family home prices may also generate the efficiency concern of discouraging new workers’ entry into such
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A Regional Analysis of the Relationship Between Housing Affordability and Business Growth Econ. Dev. Q. (IF 1.426) Pub Date : 2021-04-07 Uche Oluku, Shaoming Cheng
Using U.S. Census data for the period 2010 to 2016, for 383 metropolitan statistical areas (MSAs) and 3,137 counties nationwide, the authors examine the relationship between housing affordability and business growth in three industrial sectors: Retail, Information, and Professional Services. Housing affordability is measured by the percentage of cost-burdened homeowners and renters, defined as the
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Does Restricting the Entry of Formula Businesses Help Mom-and-Pop Stores? The Case of Small American Towns With Unique Community Character Econ. Dev. Q. (IF 1.426) Pub Date : 2021-03-18 Minjee Kim, Tingyu Zhou
Communities worldwide are increasingly introducing regulatory measures to protect independent businesses from chain stores, but the efficacy of these attempts is largely debated. Moreover, effects are likely to vary by the characteristics of the local economy, a consideration overlooked by existing studies. Using a sample of U.S. cities with unique community characteristics, the authors examine Formula
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Ready for a Close-Up: The Effect of Tax Incentives on Film Production in California Econ. Dev. Q. (IF 1.426) Pub Date : 2021-03-16 Alec Workman
Do motion picture incentives nudge productions to film in an adopting state, increase budgets, or hire more cast and filmmakers? Or do they simply subsidize productions that would have occurred regardless? Using California’s Film and Television Tax Credit Program, the author exploits incentives given out by lottery to answer these questions. The author finds that 19% of films would have filmed in California
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An Examination of the Relationship Between Local Tax Incentives and Diversification of the Local Economic Base Econ. Dev. Q. (IF 1.426) Pub Date : 2021-03-09 Adrienne DiTommaso, Robert T. Greenbaum
While much of the economic development literature attempts to quantify the effectiveness of tax incentives on growth outcomes, less attention has been paid to the relationships between incentive use and local economic base composition, despite the fact that many economic development strategies are aimed at changing industrial base makeup. Local industrial base diversity has implications for the pace
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Skill Overshooting in Job Training With the Trade Adjustment Assistance Program Econ. Dev. Q. (IF 1.426) Pub Date : 2021-01-17 Justin Barnette, Jooyoun Park
The authors investigate the training choices made by workers entering the Trade Adjustment Assistance program and their postexit outcomes. This is important as more workers enter these types of programs due to technological change and globalization. Their study shows that workers that choose a training occupation beyond their skill level (skill overshooting) achieve higher earnings ($615 annually)
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Heterogeneous Effects of State Enterprise Zone Programs in the Shorter Run and Longer Run Econ. Dev. Q. (IF 1.426) Pub Date : 2021-01-11 David Neumark, Timothy Young
The authors take up two questions that have not been explored in research on enterprise zones. First, does a considerably longer-run perspective on the effects of state enterprise zones lead to different answers? And second, are there heterogeneous effects of enterprise zones that depend on the set of incentives these programs offer, which can vary widely? The results indicate that whether state enterprise
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Natural Resource Dependence and Rural American Economic Prosperity From 2000 to 2015 Econ. Dev. Q. (IF 1.426) Pub Date : 2020-12-29 J. Tom Mueller
Research suggests dependence on natural resource development leads to decreases in per capita income, increases in inequality, and elevated poverty. Natural resource development generally takes two forms—extractive (e.g., oil and gas, mining, timber) and nonextractive (e.g., tourism, recreation, real estate). However, research has rarely examined both in tandem. Drawing on the concept of dependence
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Is Tax Competition Strategic? Spatial Distributions of Business Property Tax Abatements in the Chicago Suburbs Econ. Dev. Q. (IF 1.426) Pub Date : 2020-12-15 Richard Funderburg, Joshua Drucker, David Merriman, Rachel Weber
The authors analyze the locations of property tax abatements awarded to businesses in Cook County, Illinois from 2012 to 2014 to explore their spatial distribution and to examine local government motivations for awarding incentives. The authors’ analysis, which controls for the spatial distribution of businesses, reveals a clustering of abatements at intramunicipal geographic scales. They also find
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State and Local Taxes and Employment by Wage Level Econ. Dev. Q. (IF 1.426) Pub Date : 2020-11-22 Sohani Fatehin, David L. Sjoquist
Economists have devoted much attention to understanding the effects of state–local fiscal policies, particularly taxes, on the growth of state-level employment. However, no one has investigated whether the effects differ by wage level. Using a state-level panel data set, the authors investigate the link between state–local taxes and the growth of employment for three wage-level categories. The authors
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Looking at Our STEM Teacher Workforce: How to Model Self-Efficacy Econ. Dev. Q. (IF 1.426) Pub Date : 2020-11-22 Brandon Ofem, Samuel J. Polizzi, Gregory T. Rushton, Michael Beeth, Brock Couch, Jessica Doering, Rebecca Konz, Margaret Mohr-Schroeder, Gillian Roehrig, Keith Sheppard
There is currently a severe shortage of teachers in the U.S. workforce. The problem is especially acute among science, technology, engineering, and mathematics (STEM) teachers and exacerbated by high turnover among new teachers—those with less than 5 years of teaching experience. In this article, the authors investigate one piece of the puzzle. The authors model a social cognitive approach to understanding
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The Impact of Small Regional Economic Development Commissions: Is There Any Bang After Just a Few Bucks? Econ. Dev. Q. (IF 1.426) Pub Date : 2020-11-16 Tyler Morin, Mark Partridge
Despite substantial funding going to regional economic development programs, little is known about the benefits of some of the smaller, place-based programs. The authors extend the literature on regional commissions by analyzing the economic gains to the Delta Regional Authority (DRA). The DRA was founded in 2000 to provide enhanced development aid to 252 lower Mississippi Valley counties. Using data
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STEM and Soft Occupational Competencies: Analyzing the Value of Strategic Regional Human Capital Econ. Dev. Q. (IF 1.426) Pub Date : 2020-08-13 Fran Stewart, Minkyu Yeom, Alice Stewart
This research examines the distribution of STEM—science, technology, engineering, and mathematics—and soft-skill competencies in occupations within regional economies in the United States. This research explores the public policy question: Do occupational competencies offer a better measure of regional human capital than the commonly used metric of educational attainment? Policy makers at all levels
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Worker and Community Ownership as an Economic Development Strategy: Innovative Rebirth or Tired Retread of a Failed Idea? Econ. Dev. Q. (IF 1.426) Pub Date : 2020-07-27 Jason S. Spicer
A generation ago, American state and local experiments with worker and community ownership appeared unsuccessful. Does their current revival offer anything new to the field of economic development or is this merely a tired retread of a failed idea? Using historical analysis, case studies, and interview data from three U.S. regions, the author analyzes the current range of initiatives that seek to remove
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Entrepreneurship in Small Cities: Evidence From U.S. Micropolitan Areas Econ. Dev. Q. (IF 1.426) Pub Date : 2020-07-27 Shiqin Liu, Haifeng Qian, Kingsley E. Haynes
This article presents the spatial patterns of general and high-tech start-up rates and explores regional factors associated with entrepreneurship in U.S. micropolitan areas. Regression results show that general entrepreneurship in these small cities is predicted by population growth, the middle-age population group, the presence of small businesses, and natural amenities. Additionally, high-tech start-up
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The Price of Preserving Neighborhoods: The Unequal Impacts of Historic District Designation Econ. Dev. Q. (IF 1.426) Pub Date : 2020-07-22 Tetsuharu Oba, Douglas Simpson Noonan
Policies affecting cultural assets are popular yet imperfectly understood tools to shape local economic development. Historic preservation policies, for example, can have markedly different implications for original residents, prospective residents, and developers, even in the same city. Therefore, merely identifying its average effect can obscure important heterogeneity in its impact. This study examines
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Book Review: Riding for Deliveroo: Resistance in the New Economy Econ. Dev. Q. (IF 1.426) Pub Date : 2020-07-13 David J. Nemeth
But my fourth and final concern is the most compelling. While Baldwin is clearly an advocate for globalization, he does warn the reader about some of its potential hazards and he even offers some policy prescriptions, usually recognizing the key role of large cities as information and service hubs, which might benefit the slow-growth G7 nations. However, ever since the recession of 2007 to 2009, but
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A Scalable Energy–Economy Model for State-Level Policy Analysis Applied to a Demand-Side Management Program Econ. Dev. Q. (IF 1.426) Pub Date : 2020-07-10 Zachary A. Wendling, David C. Warren, Barry M. Rubin, Sanya Carley, Kenneth R. Richards
Over the past two decades, states and cities implemented low-carbon energy development, renewable portfolio standards, demand-side management (DSM), renewable energy production incentives, green building requirements, regional carbon trading agreements, and other energy-based economic development initiatives. Yet the dearth of state-level and substate-level models makes it difficult to predict the
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Book Review: The Great Convergence: Information Technology and the New Globalization Econ. Dev. Q. (IF 1.426) Pub Date : 2020-07-10 Gordon F. Mulligan
Rising globalization denotes the widening and deepening of interdependencies among the world’s sovereign states, where the very natures of once distinctive economic, political, and social systems become transformed by the crossborder movement of goods, services, monies, ideas, technologies, and people. In a narrower sense, this process denotes the sustained integration of economic agents across space
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Self-Report Accuracy in Local Economic Development Programs Econ. Dev. Q. (IF 1.426) Pub Date : 2020-07-07 Bill Farley
Local economic development programs are primarily aimed at increasing employment and tax revenues. Data on these programs are collected through self-report surveys conducted by the International City Managers Association and others. This study evaluates predictors of accurate self-reporting. Using agency theory as a theoretical framework, the study measures the quantity of internal reporting components
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Do Research Methods Matter in Enterprise Zone Outcome Evaluations?: A Response to Thomas Lambert Econ. Dev. Q. (IF 1.426) Pub Date : 2020-06-09 Sumei Zhang
Zhang (2015) and Lambert and Coomes (2001) have studied the Louisville Enterprise Zone (EZ) program and drawn different conclusions. This Forum/Letter to the Editor unpacks the differences in both studies by first exploring the structure and implementation of a state EZ program and various factors affecting EZ outcome measures. Methodologically, it is crucial to control for these factors to avoid biases
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Estimating the Impacts of EDA Public Works Program Investments on County Employment Econ. Dev. Q. (IF 1.426) Pub Date : 2020-06-08 Kwideok Han, Brian Whitacre, Inbae Ji
Evaluating the effectiveness of government programs is an important topic for economic developers. One popular example is the U.S. Economic Development Administration’s (EDA) Public Works Program, initially established in 1965. Haughwout (1999) found a significant positive impact of EDA public works projects completed in 1990 on county-level employment over the period 1990 to 1994. The authors reexamine
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Short-Term Versus Long-Term Effects of the Louisville Enterprise Zone Incentives: A Response to Sumei Zhang Econ. Dev. Q. (IF 1.426) Pub Date : 2020-06-06 Thomas E. Lambert
Zhang wrote that the Louisville enterprise zone (EZ) was more successful than what previous research showed and that variations in research design have led to conflicting or mixed reviews of many local economic development policies that are based on the EZ concept. She mentions a study and an article on the Louisville, Kentucky EZ and implies the time horizon used to evaluate it was too short. This
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Entrepreneurial Orientation, Collaborative Engagement, and Performance: Evidence From Rural Economic Development Organizations Econ. Dev. Q. (IF 1.426) Pub Date : 2020-05-29 Brandon Ofem, Bindu Arya, Walter J. Ferrier, Stephen P. Borgatti
This study examines the role of entrepreneurial orientation (EO) and collaborative engagement on the performance of rural economic development organizations. The authors theorize that an organization’s EO and collaborative engagement, determined by levels of active engagement within a regional collaboration network, impact its ability to accomplish its goals, satisfy its stakeholders, and influence
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The Effects of Property Tax Abatements on School District Property Tax Bases and Rates Econ. Dev. Q. (IF 1.426) Pub Date : 2020-05-17 Daphne Kenyon, Robert Wassmer, Adam Langley, Bethany Paquin
The authors analyze the effects of property tax abatement on the property tax base and rates of school districts within a municipality offering the abatement using data from Franklin County, Ohio, one of the most populous counties in the United States. An increase in a school district’s Community Reinvestment Area abatement intensity correlates with (a) a decrease in the mill rate for real property
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Economic Development as an Administrative Prerogative: An Event History Analysis of APLU Institutions Econ. Dev. Q. (IF 1.426) Pub Date : 2020-05-14 Nathan A. Moore, Rachel A. Burns
Economic development has assumed enlarged importance in public postsecondary education in recent decades. In fact, efforts to harness academic functions for statewide economic growth have been accentuated to such a degree that some consider the mission to be the fourth pillar of public higher education. Yet the extent to which economic development has been adopted as a central administrative feature
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Incentives and Firm Migration: An Interstate Comparison Approach Econ. Dev. Q. (IF 1.426) Pub Date : 2020-04-29 Yuxuan Pan, Tessa Conroy, Alexandra Tsvetkova, Matthew Kures
The authors model how state business incentives influence interstate relocation patterns of manufacturers using a panel (2000-2011) of 32 states. The National Establishment Time Series database and the Panel Database on Incentives and Taxes are used to study relocation by manufacturing establishments based on differences between the origin and destination states. The authors find that traditional factors
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Market Potential and Fiscal Incentives Influence Firms’ Location Decisions: Evidence From U.S. Counties Econ. Dev. Q. (IF 1.426) Pub Date : 2020-04-29 Martin Meurers, Johannes Moenius
How important are market potential and fiscal incentives for firms’ location decisions? We estimate the influence of subsidies and tax breaks on the decisions of firms to relocate or to remain in a certain U.S. county using a structural economic geography model developed in Meurers and Moenius (2018). In a panel data set from 1990 to 2016 for almost 3,000 U.S. counties, the authors find a strong and
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Incentivized for Leveling the Playing Field: Do State Economic Incentives Compensate for High Taxes? Econ. Dev. Q. (IF 1.426) Pub Date : 2020-04-29 Shaoming Cheng, Hai (David) Guo, Cathy Yang Liu
State tax and nontax incentives have been widespread in the United States, though their efficacy in job creation and economic development has been repeatedly questioned in the literature by scholars and policy makers. Why, then, do states persistently pursue these incentive policies? Using the newly developed Panel Database on Incentives and Taxes, we adopt a dynamic spatial Durbin panel model to account
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The Impact of State-Level Research and Development Tax Credits on the Quantity and Quality of Entrepreneurship Econ. Dev. Q. (IF 1.426) Pub Date : 2020-04-29 Catherine Fazio, Jorge Guzman, Scott Stern
U.S. states often cite the acceleration of start-up activity as a rationale for the research and development (R&D) tax credit. While a strong empirical base links the R&D tax credit to increased innovation, prior work provides no causal evidence that the credit effects the rate of formation and growth potential of new businesses. This article combines data from the Startup Cartography Project with
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The Effects of State and Local Economic Incentives on Business Start-Ups in the United States: County-Level Evidence Econ. Dev. Q. (IF 1.426) Pub Date : 2020-04-27 Mark Partridge, Sydney Schreiner, Alexandra Tsvetkova, Carlianne Elizabeth Patrick
Even as economic incentives are increasingly used by policy makers to spur state and local economic development, their use is controversial among the public and academics. The authors examine whether state and local incentives lead to higher rates of business start-ups in metropolitan counties. Existing research indicates that start-ups are important for supporting (net) job creation, long-term growth
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Introduction to Special Issue: Learning More About Incentives Econ. Dev. Q. (IF 1.426) Pub Date : 2020-03-25 Timothy J. Bartik
This special issue of Economic Development Quarterly (EDQ) focuses on state and local financial incentives, provided to businesses to spur state or local economic development. EDQ made a public request for papers on the causes or effects of incentives. Selected authors participated in an Upjohn Institute researchers’ workshop. Submitted papers went through the journal’s normal referee process. What