IDEAS home Printed from https://ideas.repec.org/a/bla/growch/v36y2005i2p139-166.html

Solving the Problems of Economic Development Incentives

Author

Listed:
  • TIMOTHY J. BARTIK

Abstract

ABSTRACT This paper reviews the research literature relevant to economic development incentives provided by state and local governments, and recommends reforms in these incentives. I argue that the main problem with current incentive policies is that state and local governments often provide incentives that are not in the best interest of that state or local area, for example that are excessively costly per job created, or that provide jobs that do not improve the job opportunities of local residents. I suggest that reforms should be “bottom‐up” rather than “top‐down.” Regulation of incentives by the federal government may prevent both desirable and undesirable incentives. “Bottom‐up” reforms would include more information on incentive offers, a budget constraint on the volume of incentives, stronger standards for job quality and job accessibility for the local unemployed, and better benefit‐cost analyses of incentives.

Suggested Citation

  • Timothy J. Bartik, 2005. "Solving the Problems of Economic Development Incentives," Growth and Change, Wiley Blackwell, vol. 36(2), pages 139-166, June.
    • Handle: RePEc:bla:growch:v:36:y:2005:i:2:p:139-166
    DOI: 10.1111/j.1468-2257.2005.00272.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-2257.2005.00272.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-2257.2005.00272.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Timothy J. Bartik, "undated". "The Effects of Metropolitan Job Growth on the Size Distribution of Family Income," Upjohn Working Papers tjb1994jrs, W.E. Upjohn Institute for Employment Research.
    2. Timothy J. Bartik, 2003. "Thoughts on American Manufacturing Decline and Revitalization," Upjohn Working Papers 03-96, W.E. Upjohn Institute for Employment Research.
    3. Timothy J. Bartik & Peter K. Eisinger & George A. Erickcek, 2003. "Economic Development Policy in Michigan," Book chapters authored by Upjohn Institute researchers, in: Charles L. Ballard & Paul N. courant & Douglas C. Drake & Ronald C. Fisher & Elisabeth R. Gerber (ed.),Michigan at the Millennium: A Benchmark and Analysis of Its Fiscal and Economic Structure, pages 279-297, W.E. Upjohn Institute for Employment Research.
    4. Timothy J. Bartik, 1996. "Eight issues for policy toward economic development incentives," The Region, Federal Reserve Bank of Minneapolis, vol. 10(Jun), pages 43-46.
    5. Alan H. Peters & Peter S. Fisher, 2002. "State Enterprise Zone Programs: Have They Worked?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number sezp.
    6. Timothy J. Bartik, 2001. "Jobs for the Poor: Can Labor Demand Policies Help?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number tjb2001.
    7. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    8. Andrew Haughwout & Robert Inman & Steven Craig & Thomas Luce, 2004. "Local Revenue Hills: Evidence from Four U.S. Cities," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 570-585, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Timothy J. Bartik, 2004. "Incentive Solutions," Upjohn Working Papers 04-99, W.E. Upjohn Institute for Employment Research.
    2. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers 03-91, W.E. Upjohn Institute for Employment Research.
    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. Timothy J. Bartik, "undated". "Increasing the Economic Development Benefits of Higher Education in Michigan," Upjohn Working Papers tjb2005jwd, W.E. Upjohn Institute for Employment Research.
    5. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.
    6. Timothy J. Bartik, 2009. "The Revitalization of Older Industrial Cities: A Review Essay of Retooling for Growth," Growth and Change, Wiley Blackwell, vol. 40(1), pages 1-29, March.
    7. Mark D. Partridge & Dan S. Rickman & Hui Li, 2009. "Who Wins From Local Economic Development?," Economic Development Quarterly, , vol. 23(1), pages 13-27, February.
    8. Timothy J. Bartik, 2020. "Using Place-Based Jobs Policies to Help Distressed Communities," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 99-127, Summer.
    9. Mark D. Partridge & Dan S. Rickman & Ying Tan & M. Rose Olfert, 2015. "U.S. Regional Poverty Post-2000," Economic Development Quarterly, , vol. 29(1), pages 38-48, February.
    10. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    11. Matias Busso & Patrick Kline, 2008. "Do Local Economic Development Programs Work? Evidence from the Federal Empowerment Zone Program," Cowles Foundation Discussion Papers 1639, Cowles Foundation for Research in Economics, Yale University.
    12. Krupka, Douglas J. & Noonan, Douglas S., 2009. "Empowerment Zones, neighborhood change and owner-occupied housing," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 386-396, July.
    13. Anna Alberini, 2007. "Determinants And Effects On Property Values Of Participation In Voluntary Cleanup Programs: The Case Of Colorado," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 415-432, July.
    14. David Neumark & Diego Grijalva, 2017. "The Employment Effects of State Hiring Credits," ILR Review, Cornell University, ILR School, vol. 70(5), pages 1111-1145, October.
    15. Anna Alberini & Dennis Guignet, 2008. "Voluntary Cleanups and Redevelopment Potential: Lessons from Baltimore, Maryland," Working Papers 2008.87, Fondazione Eni Enrico Mattei.
    16. Linda Lobao & P. Wilner Jeanty & Mark Partridge & David Kraybill, 2012. "Poverty and Place across the United States," International Regional Science Review, , vol. 35(2), pages 158-187, April.
    17. Robert S. Chirinko & Daniel J. Wilson, 2023. "Job Creation Tax Credits, Fiscal Foresight, and Job Growth: Evidence from US States," National Tax Journal, University of Chicago Press, vol. 76(3), pages 481-523.
    18. Laura Wolf-Powers, 2013. "Predictors of Employment Growth and Unemployment in U.S. Central Cities, 1990-2010," Upjohn Working Papers 13-199, W.E. Upjohn Institute for Employment Research.
    19. Robert T. Greenbaum & Jim Landers, 2009. "Why Are State Policy Makers Still Proponents of Enterprise Zones? What Explains Their Action in the Face of a Preponderance of the Research?," International Regional Science Review, , vol. 32(4), pages 466-479, October.
    20. Timothy J. Bartik, 2020. "Targeting Jobs Toward The People Who Need Them," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(3), pages 854-857, June.

    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:growch:v:36:y:2005:i:2:p:139-166. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.