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Local Fiscal Variables and Intrametropolitan Firm Location: Regression Evidence from the United States and Research Suggestions

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  • R W Wassmer

    (Department of Economics, and College of Urban, Labor, and Metropolitan Affairs, Wayne State University, Detroit, Ml 48202, USA)

Abstract

A survey is given of US studies relating to the influence of local fiscal variables on intrametropolitan firm location. The survey is important for two reasons. First, it documents the reversal in early empirical results that local fiscal variables do not influence intrametropolitan firm location to the current empirical consensus that local fiscal variables do exert some statistically significant influence. Second, the survey is used to formulate suggestions on how research on this topic, no matter where it is done for, should proceed. A recent study is described that shows that property tax abatements to firms mitigate the influence that local fiscal variables have on intrametropolitan firm location. A tabular summary of the varying property tax and local expenditure elasticities of various measures of firm location is also given.

Suggested Citation

  • R W Wassmer, 1990. "Local Fiscal Variables and Intrametropolitan Firm Location: Regression Evidence from the United States and Research Suggestions," Environment and Planning C, , vol. 8(3), pages 283-296, September.
  • Handle: RePEc:sae:envirc:v:8:y:1990:i:3:p:283-296
    DOI: 10.1068/c080283
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    References listed on IDEAS

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    1. W. Warren McHone, 1986. "Supply-Side Considerations in the Location of Industry in Suburban Communities: Empirical Evidence from the Philadelphia SMSA," Land Economics, University of Wisconsin Press, vol. 62(1), pages 64-73.
    2. McGuire, Therese J., 1985. "Are local property taxes important in the intrametropolitan location decisions of firms? An empirical analysis of the Minneapolis-St. Paul metropolitan area," Journal of Urban Economics, Elsevier, vol. 18(2), pages 226-234, September.
    3. Sharon G. Levin, 1974. "Suburban-Central City Property Tax Differentials and the Location of Industry: Some Evidence," Land Economics, University of Wisconsin Press, vol. 50(4), pages 380-386.
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    Cited by:

    1. Robert W. Wassmer, 1994. "Can Local Incentives Alter a Metropolitan City's Economic Development?," Urban Studies, Urban Studies Journal Limited, vol. 31(8), pages 1251-1278, October.

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