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The effects of state policies on the location of industry: evidence from state borders

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Author Info

  • Thomas J. Holmes

Abstract

This paper provides new evidence that state policies play a role in the location of industry. The paper classifies a state as pro-business or anti-business depending upon whether or not the state has a right-to-work law. The paper finds that, on average, there is a large abrupt increase in manufacturing activity when crossing a state border from an anti-business state into a pro-business state.

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File URL: http://minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=486
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File URL: http://minneapolisfed.org/research/sr/sr205.pdf
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Bibliographic Info

Paper provided by Federal Reserve Bank of Minneapolis in its series Staff Report with number 205.

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Date of creation: 1996
Date of revision:
Publication status: Published in Journal of Political Economy (Vol. 106, No. 4, August 1998, pp. 667-705)
Handle: RePEc:fip:fedmsr:205

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Related research

Keywords: Industrial location;

References

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  1. Thomas J. Holmes, 1995. "Localization of industry and vertical disintegration," Staff Report 190, Federal Reserve Bank of Minneapolis.
  2. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers and Journal Articles 03-91, W.E. Upjohn Institute for Employment Research.
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Citations

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Cited by:
  1. Guy Dumais & Glenn Ellison & Edward L Glaeser, 1998. "Geographic Concentration as a Dynamic Process," Working Papers 98-3, Center for Economic Studies, U.S. Census Bureau.
  2. Stephen Redding, 2009. "Economic Geography: A Review of the Theoretical and Empirical Literature," CEP Discussion Papers dp0904, Centre for Economic Performance, LSE.
  3. Devesh Raval, 2011. "Beyond Cobb-Douglas: Estimation of a CES Production Function with Factor Augmenting Technology," Working Papers 11-05, Center for Economic Studies, U.S. Census Bureau.
  4. Ozkan Eren & I. Serkan Ozbeklik, 2011. "Right-to-Work Laws and State-Level Economic Outcomes: Evidence from the Case Studies of Idaho and Oklahoma Using Synthetic Control Method," Working Papers 1101 Classification-JEL J, University of Nevada, Las Vegas , Department of Economics.
  5. Stephen Redding, 2009. "The empirics of new economic geography," LSE Research Online Documents on Economics 25499, London School of Economics and Political Science, LSE Library.
  6. William H. Oakland & William A. Testa, 1998. "Can the benefits principle be applied to state-local taxation of business?," Working Paper Series WP-98-16, Federal Reserve Bank of Chicago.
  7. Glaeser, Edward L., 2008. "The Economic Approach to Cities," Working Paper Series rwp08-003, Harvard University, John F. Kennedy School of Government.
  8. Satyajit Chatterjee, 2003. "Agglomeration economies: the spark that ignites a city?," Business Review, Federal Reserve Bank of Philadelphia, issue Q4, pages 6-13.

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