Estimating Costs and Benefits of Economic Growth: A CGE-Based Study of Tax Incentives in a Rapidly Growing Region
Municipalities have used tax incentives to attract manufacturing firms to counteract market failures, mobilize resources in blighted areas, and engage in bidding wars with other jurisdictions. These reasons have typically been remedies for regions experiencing unemployment and low growth. However, high growth areas still use tax incentives to manage growth. In these cases, the costs of growth, especially related to congestion, pollution, costs of city services and rising prices, must be compared to economic benefits resulting from a tax incentive. The case study in this paper is based on a proposal to the city of Fort Collins, Colorado by Hyundai Corporation, who requested a $25.5 million use tax rebate. This paper uses a data intensive computable general equilibrium (CGE) model to estimate endogenously the costs and benefits of growth. Results of the analysis suggest an $18.15 million rebate was warranted.
Volume (Year): 34 (2004)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://jrap-journal.org/index.htm|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chang K. Seung & Thomas R. Harris & Jeffrey E. Eglin & Noelwah R. Netusil, 1999. "Application of a Computable General Equilibrium (CGE) Model to Evaluate Surface Water Reallocation Policies," The Review of Regional Studies, Southern Regional Science Association, vol. 29(2), pages 139-155, Fall.
- Gary Gillespie & Peter Mcgregor & J. Kim Swales & Ya Ping Yin, 2001. "The Displacement and Multiplier Effects of Regional Selective Assistance: A Computable General Equilibrium Analysis," Regional Studies, Taylor & Francis Journals, vol. 35(2), pages 125-139.
- Dye, Richard F. & Merriman, David F., 2000. "The Effects of Tax Increment Financing on Economic Development," Journal of Urban Economics, Elsevier, vol. 47(2), pages 306-328, March.
- Jones, Rich & Whalley, John, 1989. "A Canadian regional general equilibrium model and some applications," Journal of Urban Economics, Elsevier, vol. 25(3), pages 368-404, May.
- Chang K. Seung & David S. Kraybill, 2001. "The Effects of Infrastructure Investment: A Two-Sector Dynamic Computable General Equilibrium Analysis for Ohio," International Regional Science Review, SAGE Publishing, vol. 24(2), pages 261-281, April.
- Greenwood, Michael J, et al, 1991. "Migration, Regional Equilibrium, and the Estimation of Compensating Differentials," American Economic Review, American Economic Association, vol. 81(5), pages 1382-90, December.
- Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
- Calfee, John & Winston, Clifford, 1998. "The value of automobile travel time: implications for congestion policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 83-102, July.
- Small, K.A. & Kazimi, C., 1994.
"On the Costs of Air Pollution from Motor Vehicules,"
94-95-3, California Irvine - School of Social Sciences.
- Small, Kenneth A. & Kazimi, Camilla, 1995. "On the Costs of Air Pollution from Motor Vehicles," University of California Transportation Center, Working Papers qt0sx81025, University of California Transportation Center.
- John Calfee & Clifford Winston & Randolph Stempski, 2001. "Econometric Issues In Estimating Consumer Preferences From Stated Preference Data: A Case Study Of The Value Of Automobile Travel Time," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 699-707, November.
- Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, SAGE Publishing, vol. 21(3), pages 205-248, December.
- Timothy J. Bartik, . "Who Benefits from Local Job Growth: Migrants or Original Residents?," Upjohn Working Papers and Journal Articles tjb1993rs, W.E. Upjohn Institute for Employment Research.
- Seung, Chang K. & Englin, Jeffrey E. & Harris, Thomas R., 1997. "Application of Computable General Equilibrium Model to Derive Impacts of Surface Water Reallocation Policy," 1997 Annual Meeting, July 13-16, 1997, Reno\Sparks, Nevada 35841, Western Agricultural Economics Association.
When requesting a correction, please mention this item's handle: RePEc:ags:jrapmc:132285. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.