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The Effects Of Local Taxes And Spending On Business Startups

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Author Info
Gabe, Todd
Abstract

This paper examines the effects of local taxes and government spending on new business startups in 8,576 Maine city-industries between 1993 and 1994. Empirical findings indicate that local property tax rates have a negative effect on the number of startups, whereas spending on education and total local government spending on public services have a positive effect on new business activity.

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File URL: http://purl.umn.edu/20769
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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20769.

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Date of creation: 2001
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Handle: RePEc:ags:aaea01:20769

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Related research
Keywords: Community/Rural/Urban Development;

References listed on IDEAS
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  1. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-49, August. [Downloadable!] (restricted)
  2. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
  3. Ronald C. Fisher, 1997. "Effects of state and local public services on economic development," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 53-82. [Downloadable!]
  4. Robert Walker & David Greenstreet, 1991. "The Effect of Government Incentives and Assistance on Location and Job Growth in Manufacturing," Regional Studies, Taylor and Francis Journals, vol. 25(1), pages 13-30, February. [Downloadable!] (restricted)
  5. Lambson, Val Eugene & Jensen, Farrell E, 1998. "Sunk Costs and Firm Value Variability: Theory and Evidence," American Economic Review, American Economic Association, vol. 88(1), pages 307-13, March. [Downloadable!] (restricted)
  6. Cabral, Luis, 1995. "Sunk Costs, Firm Size and Firm Growth," Journal of Industrial Economics, Blackwell Publishing, vol. 43(2), pages 161-72, June. [Downloadable!] (restricted)
  7. Murray, Sheila E & Evans, William N & Schwab, Robert M, 1998. "Education-Finance Reform and the Distribution of Education Resources," American Economic Review, American Economic Association, vol. 88(4), pages 789-812, September. [Downloadable!] (restricted)
  8. Newman, Robert J. & Sullivan, Dennis H., 1988. "Econometric analysis of business tax impacts on industrial location: What do we know, and how do we know it?," Journal of Urban Economics, Elsevier, vol. 23(2), pages 215-234, March. [Downloadable!] (restricted)
  9. Timothy J. Bartik, 2003. "Local Economic Development Policies," Staff Working Papers 03-91, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  10. Dixit, Avinash K, 1989. "Entry and Exit Decisions under Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 620-38, June. [Downloadable!] (restricted)
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  11. Pindyck, Robert S, 1982. "Adjustment Costs, Uncertainty, and the Behavior of the Firm," American Economic Review, American Economic Association, vol. 72(3), pages 415-27, June.
  12. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932.
  13. Michael Wasylenko, 1997. "Taxation and economic development: the state of the economic literature," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 37-52. [Downloadable!]
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