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Tax Increment Financing in Missouri: An Analysis of Determinants, Competitive Dynamics, Equity, and Path Dependency

Author

Listed:
  • Susan Mason

    (Boise State University, Boise, ID, USA)

  • Kenneth P. Thomas

    (University of Missouri-St. Louis, St. Louis, MO, USA, susanmason@boisestate.edu)

Abstract

Tax increment financing (TIF) has been a popular and controversial economic development tool for several decades. This research considers the determinants of competitive dynamics, equity, and path dependency on TIF use. The authors use logistic and ordinary least squares regressions on the approval, number, and value of TIFs in Missouri to flesh out the competitive dynamics, effects on intermunicipal inequality, and path dependency of TIF use. They find that there are competitive dynamics that affect TIF use: Being adjacent to another city that uses TIF increases the likelihood that a city will approve a TIF. The study finds evidence that TIF adoption patterns contribute to intermunicipal inequality, and it provides some support for the importance of path dependency in TIF use.

Suggested Citation

  • Susan Mason & Kenneth P. Thomas, 2010. "Tax Increment Financing in Missouri: An Analysis of Determinants, Competitive Dynamics, Equity, and Path Dependency," Economic Development Quarterly, , vol. 24(2), pages 169-179, May.
    • Handle: RePEc:sae:ecdequ:v:24:y:2010:i:2:p:169-179
    DOI: 10.1177/0891242409358080
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    References listed on IDEAS

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    Cited by:

    1. Timothy J. Bartik & George Erickcek, 2014. "Simulating the Effects of the Tax Credit Program of the Michigan Economic Growth Authority on Job Creation and Fiscal Benefits," Economic Development Quarterly, , vol. 28(4), pages 314-327, November.
    2. Nathan Jensen & Edmund Malesky & Matthew Walsh, 2015. "Competing for global capital or local voters? The politics of business location incentives," Public Choice, Springer, vol. 164(3), pages 331-356, September.
    3. Timothy J. Bartik & George A. Erickcek, 2012. "Simulating the Effects of Michigan's MEGA Tax Credit Program on Job Creation and Fiscal Benefits," Upjohn Working Papers 12-185, W.E. Upjohn Institute for Employment Research.
    4. Adriana Giurgiu, 2012. "Investment Incentives and the Global Competition for Capital – By K.P. Thomas," Journal of Common Market Studies, Wiley Blackwell, vol. 50(1), pages 190-190, January.

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