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Wal-Mart’s Impact on Local Revenue and Expenditure Instruments in Ohio, 1988–2003

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  • Michael Hicks

Abstract

This research estimates fiscal impacts of Wal-Mart in Ohio from 1985 through 2003. Using a panel of counties, and accounting for spatial autocorrelation in an instrumental variable model I estimate impact of Wal-Mart and Super-Centers on selected revenues and transfer payments. Among the findings is that the presence of a Wal-Mart increases local commercial property tax assessments resulting in collection increases of between $350,000 and $1.3 million. There is also an 18–43% reduction in per capita EITC claims in a county. However, Medicaid expenditures experience growth which amount to roughly 16 additional cases attributable to a single Wal-Mart. The magnitude and statistical certainty of these findings, suggests that local fiscal intervention, either through incentives or a “Wal-Mart Tax” is unwarranted. Copyright International Atlantic Economic Society 2007

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  • Michael Hicks, 2007. "Wal-Mart’s Impact on Local Revenue and Expenditure Instruments in Ohio, 1988–2003," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(1), pages 77-95, March.
    • Handle: RePEc:kap:atlecj:v:35:y:2007:i:1:p:77-95
    DOI: 10.1007/s11293-006-9062-6
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    1. Neumark, David & Zhang, Junfu & Ciccarella, Stephen, 2008. "The effects of Wal-Mart on local labor markets," Journal of Urban Economics, Elsevier, vol. 63(2), pages 405-430, March.
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    4. Michael J. Hicks & Kristy Wilburn, 2005. "The Locational Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," Urban/Regional 0511011, University Library of Munich, Germany.
    5. Robert I. Lerman & Kelly S. Mikelson, 2004. "Examining the Relationship between the EITC and Food Stamp Program Participation Among Households with Children," Econometric Society 2004 North American Summer Meetings 190, Econometric Society.
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    8. Robert W. Wassmer, 2003. "The influence of local fiscal structure and growth control choices on 'big-box' urban sprawl in the American West," Chapters, in: Dick Netzer (ed.), The Property Tax, Land Use and Land Use Regulation, chapter 4, Edward Elgar Publishing.
    9. Stephan J. Goetz & Hema Swaminathan, 2006. "Wal‐Mart and County‐Wide Poverty," Social Science Quarterly, Southwestern Social Science Association, vol. 87(2), pages 211-226, June.
    10. Konishi, Hideo, 2005. "Concentration of competing retail stores," Journal of Urban Economics, Elsevier, vol. 58(3), pages 488-512, November.
    11. Michael Hicks, 2015. "Does Wal-Mart Cause an Increase in Anti-Poverty Expenditures?," Social Science Quarterly, Southwestern Social Science Association, vol. 96(4), pages 1136-1152, December.
    12. Barnes, Nora Ganim & Connell, Allison & Hermenegildo, Lisa & Mattson, Lucinda, 1996. "Regional differences in the economic impact of Wal-Mart," Business Horizons, Elsevier, vol. 39(4), pages 21-25.
    13. Hicks, Michael J. & Wilburn, Kristy L., 2001. "The Regional Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 305-313, Winter.
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    Cited by:

    1. Pope, Devin G. & Pope, Jaren C., 2015. "When Walmart comes to town: Always low housing prices? Always?," Journal of Urban Economics, Elsevier, vol. 87(C), pages 1-13.
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    3. Donald Vandegrift, 2016. "The effect of Walmart and Target on property tax rates," Letters in Spatial and Resource Sciences, Springer, vol. 9(3), pages 309-327, October.
    4. Donald Vandegrift & John Loyer, 2015. "The Effect Of Walmart And Target On The Tax Base: Evidence From New Jersey," Journal of Regional Science, Wiley Blackwell, vol. 55(2), pages 159-187, March.

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    More about this item

    Keywords

    Wal-Mart; Medicaid; fiscal; Ohio; H71; R11; R51;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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