State Economic Incentives: Stimulus or Reallocation?
This article estimates the effects of state economic incentives during the 1980s and interprets results in the context of a general-equilibrium specific-factors model of production. The issue is whether investment incentives had a net positive impact on manufacturing value added because subsidized firms would pull resources from the rest of the state economy. The public finance literature provides the foundation of the econometric model. Empirical results are consistent with theoretical predictions of the specific-factors model that resources would come from other sectors. Incentives are associated with a reduction in manufacturing value added.
Volume (Year): 32 (2004)
Issue (Month): 6 (November)
|Contact details of provider:|
When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:32:y:2004:i:6:p:651-665. 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)
If references are entirely missing, you can add them using this form.