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Do Location-Based Tax Incentives Improve Quality Of Life And Quality Of Business Environment?

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  • C. Lockwood Reynolds
  • Shawn Rohlin

Abstract

type="main"> We examine how location-based tax incentives affect quality of life and business environment through changes in property values and equilibrium wages. Using the federal Empowerment Zone program, we determine whether offering tax incentives to firms improves the welfare of the citizens and attractiveness to firms. We demonstrate that quality of life methodologies can be applied using small geographically aggregated data, such as census block groups. We find that the tax incentives offered by the program notably enhances the quality of business environment for firms in the area while modestly improving the quality of life for the individuals living in the area.

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  • C. Lockwood Reynolds & Shawn Rohlin, 2014. "Do Location-Based Tax Incentives Improve Quality Of Life And Quality Of Business Environment?," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 1-32, January.
  • Handle: RePEc:bla:jregsc:v:54:y:2014:i:1:p:1-32
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    5. Anping Chen & Marlon Boarnet & Mark Partridge & Haifang Huang & Brad R. Humphreys, 2014. "New Sports Facilities And Residential Housing Markets," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 629-663, September.
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    7. Luis Armando Galvis-Aponte & Leonardo Bonilla-Mejía & Sara María Gómez-Mesa, 2019. "Exenciones tributarias y desarrollo regional: evidencia de Colombia," Documentos de trabajo sobre Economía Regional y Urbana 284, Banco de la Republica de Colombia.
    8. Hongbo Wang, 2016. "The Texas economic model, miracle or mirage? A spatial hedonic analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(2), pages 393-417, March.
    9. Joel Elvery & C. Lockwood Reynolds & Shawn M. Rohlin, 2021. "Employer Wage Subsidy Caps and Part-Time Work," Working Papers 202101, Federal Reserve Bank of Cleveland.
    10. Cai, Zhengyu, 2020. "Imperfect Mobility," GLO Discussion Paper Series 623, Global Labor Organization (GLO).
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    12. James Alm & Trey Dronyk-Trosper & Sean Larkin, 2021. "In the land of OZ: designating opportunity zones," Public Choice, Springer, vol. 188(3), pages 503-523, September.
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