IDEAS home Printed from
   My bibliography  Save this article

Is NY's Supply-Side Experiment Working? A Preliminary Analysis using County Unemployment Rates


  • Lynn B. Snarr

    (Westminster College)

  • Hal Snarr

    (Westminster College)

  • Dan Friesner

    (North Dakota State University)


"The State of New York recently enacted business tax reforms. The first legislative act launched the START-UP NY program in 2014. It created tax free enterprise zones throughout the state to incentivize business incubation within, or relocation of existing firms to, the State of New York. In that same year, the state lowered its corporate tax rate state-wide from 7.1% to 6.5% in 2016. We use a difference-in-differences (DID) methodology, evaluated using county-level data, to empirically test whether New York’s recent business tax reforms significantly reduce unemployment, beyond what would exist in the absence of the reforms. We fail to find significant evidence that START-UP NY affects unemployment during the period studied, 2014-2017. We do, however, find evidence suggesting that New York lowering its corporate tax rates in 2016 is associated with a reduction in unemployment (by approximately 90,000 jobs) in 2016 and a smaller reduction (by approximately 25,000 jobs) in 2017."

Suggested Citation

  • Lynn B. Snarr & Hal Snarr & Dan Friesner, 2018. "Is NY's Supply-Side Experiment Working? A Preliminary Analysis using County Unemployment Rates," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 10(3), pages 245-266, May.
  • Handle: RePEc:ren:journl:v:10:y:2018:i:3:p:245-266

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    entrepreneurship; employment; regional economic development;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry


    Access and download statistics


    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:ren:journl:v:10:y:2018:i:3:p:245-266. 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: (Dr. Jerzy (Jurek) Konieczny). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.