IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v15y2001i2p132-148.html
   My bibliography  Save this article

Bidding for Business: New Evidence on the Effect of Locally Offered Economic Development Incentives in a Metropolitan Area

Author

Listed:
  • Robert W. Wassmer

    (California State University, Sacramento)

  • John E. Anderson

    (University of Nebraska, Lincoln)

Abstract

The use of local economic development incentives within a metropolitan area has undergone less analysis than incentives that attempt to alter interregional business location decisions. This is unfortunate because other factors that influence where business resides are constant across cities in a metropolitan area, and a properly used incentive is more likely to alter a business location decision. To comment on these issues, the authors use a simultaneous equation model to conduct regression analyses of panel data from 112 cities in the Detroit metropolitan area. They find that only certain forms of local incentives, at certain times, exert the expected positive influence on the local value of commercial and manufacturing property. The findings are tied to issues related to the redistribution of economic activity from the core to the periphery in U.S. metropolitan areas, and the authors conclude with policy suggestions on the future use of local incentives.

Suggested Citation

  • Robert W. Wassmer & John E. Anderson, 2001. "Bidding for Business: New Evidence on the Effect of Locally Offered Economic Development Incentives in a Metropolitan Area," Economic Development Quarterly, , vol. 15(2), pages 132-148, May.
  • Handle: RePEc:sae:ecdequ:v:15:y:2001:i:2:p:132-148
    as

    Download full text from publisher

    File URL: http://edq.sagepub.com/content/15/2/132.abstract
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. Avraham Ebenstein & Ann Harrison & Margaret McMillan & Shannon Phillips, 2014. "Estimating the Impact of Trade and Offshoring on American Workers using the Current Population Surveys," The Review of Economics and Statistics, MIT Press, vol. 96(4), pages 581-595, October.
    3. Timothy J. Wilkinson, 1999. "The Effect of State Appropriations on Export-Related Employment in Manufacturing," Economic Development Quarterly, , vol. 13(2), pages 172-182, May.
    4. Cletus Coughlin & Howard Wall, 2003. "NAFTA and the changing pattern of state exports," Papers in Regional Science, Springer;Regional Science Association International, pages 427-450.
    5. Roger F. Riefler, 2007. "State Patterns of Occupational Earnings: Implications for Long-Term Growth," Economic Development Quarterly, , vol. 21(1), pages 34-48, February.
    6. Eli Miloslavsky & Howard J. Shatz, 2006. "Services Exports and the States: Measuring the Potential," Economic Development Quarterly, , vol. 20(1), pages 3-21, February.
    7. Susan N. Houseman, "undated". "Job Growth and the Quality of Jobs in the U.S. Economy," Upjohn Working Papers and Journal Articles snh19951, W.E. Upjohn Institute for Employment Research.
    8. John Baldwin & W. Brown, 2004. "Regional manufacturing employment volatility in Canada: The effects of specialisation and trade," Papers in Regional Science, Springer;Regional Science Association International, pages 519-541.
    9. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
    10. Clark Don P. & Sawyer W. Charles & Sprinkle Richard L, 2005. "Revealed Comparative Advantage Indexes for Regions of the United States," Global Economy Journal, De Gruyter, vol. 5(1), pages 1-26, March.
    11. Cletus C. Coughlin, 2004. "The increasing importance of proximity for exports from U.S. states," Review, Federal Reserve Bank of St. Louis, issue Nov, pages 1-18.
    12. Jang Jin, 2002. "Exports and growth: is the export-led growth hypothesis valid for provincial economies?," Applied Economics, Taylor & Francis Journals, vol. 34(1), pages 63-76.
    13. Mark Drabenstott, 2006. "Rethinking federal policy for regional economic development," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 115-142.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saxon, Nicholas & Tosun, Mehmet S. & Yang, Jingjing, 2015. "State and Local Sales Taxes and Business Activity in the United States," IZA Discussion Papers 9413, Institute for the Study of Labor (IZA).
    2. Bollinger, Christopher R. & Ihlanfeldt, Keith R., 2003. "The intraurban spatial distribution of employment: which government interventions make a difference?," Journal of Urban Economics, Elsevier, vol. 53(3), pages 396-412, May.
    3. Anna Alberini & Alberto Longo, 2006. "The Effects of Contamination and Cleanup on Commercial and Industrial Properties: A Hedonic Pricing Model of Maryland and Baltimore City," ERSA conference papers ersa06p413, European Regional Science Association.
    4. Charles Swenson, 2017. "Empirical Evidence on the Impact of City Taxes," Applied Economics and Finance, Redfame publishing, vol. 4(2), pages 65-75, March.

    More about this item

    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:sae:ecdequ:v:15:y:2001:i:2:p:132-148. 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: (SAGE Publications). 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.