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Wal-Mart’s Impact on Local Revenue and Expenditure Instruments in Ohio, 1988–2003

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  • Michael Hicks

Abstract

This research estimates fiscal impacts of Wal-Mart in Ohio from 1985 through 2003. Using a panel of counties, and accounting for spatial autocorrelation in an instrumental variable model I estimate impact of Wal-Mart and Super-Centers on selected revenues and transfer payments. Among the findings is that the presence of a Wal-Mart increases local commercial property tax assessments resulting in collection increases of between $350,000 and $1.3 million. There is also an 18–43% reduction in per capita EITC claims in a county. However, Medicaid expenditures experience growth which amount to roughly 16 additional cases attributable to a single Wal-Mart. The magnitude and statistical certainty of these findings, suggests that local fiscal intervention, either through incentives or a “Wal-Mart Tax” is unwarranted. Copyright International Atlantic Economic Society 2007

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  • Michael Hicks, 2007. "Wal-Mart’s Impact on Local Revenue and Expenditure Instruments in Ohio, 1988–2003," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(1), pages 77-95, March.
    • Handle: RePEc:kap:atlecj:v:35:y:2007:i:1:p:77-95
    DOI: 10.1007/s11293-006-9062-6
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    1. Neumark, David & Zhang, Junfu & Ciccarella, Stephen, 2008. "The effects of Wal-Mart on local labor markets," Journal of Urban Economics, Elsevier, vol. 63(2), pages 405-430, March.
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    6. Robert W. Wassmer, 2003. "The influence of local fiscal structure and growth control choices on 'big-box' urban sprawl in the American West," Chapters, in: Dick Netzer (ed.), The Property Tax, Land Use and Land Use Regulation, chapter 4, Edward Elgar Publishing.
    7. Konishi, Hideo, 2005. "Concentration of competing retail stores," Journal of Urban Economics, Elsevier, vol. 58(3), pages 488-512, November.
    8. Michael Hicks, 2015. "Does Wal-Mart Cause an Increase in Anti-Poverty Expenditures?," Social Science Quarterly, Southwestern Social Science Association, vol. 96(4), pages 1136-1152, December.
    9. Barnes, Nora Ganim & Connell, Allison & Hermenegildo, Lisa & Mattson, Lucinda, 1996. "Regional differences in the economic impact of Wal-Mart," Business Horizons, Elsevier, vol. 39(4), pages 21-25.
    10. Michael J. Hicks & Kristy Wilburn, 2005. "The Locational Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," Urban/Regional 0511011, University Library of Munich, Germany.
    11. Robert I. Lerman & Kelly S. Mikelson, 2004. "Examining the Relationship between the EITC and Food Stamp Program Participation Among Households with Children," Econometric Society 2004 North American Summer Meetings 190, Econometric Society.
    12. Stephan J. Goetz & Hema Swaminathan, 2006. "Wal‐Mart and County‐Wide Poverty," Social Science Quarterly, Southwestern Social Science Association, vol. 87(2), pages 211-226, June.
    13. Hicks, Michael J. & Wilburn, Kristy L., 2001. "The Regional Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 305-313, Winter.
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    Cited by:

    1. Pope, Devin G. & Pope, Jaren C., 2015. "When Walmart comes to town: Always low housing prices? Always?," Journal of Urban Economics, Elsevier, vol. 87(C), pages 1-13.
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    3. Donald Vandegrift & John Loyer, 2015. "The Effect Of Walmart And Target On The Tax Base: Evidence From New Jersey," Journal of Regional Science, Wiley Blackwell, vol. 55(2), pages 159-187, March.
    4. Donald Vandegrift, 2016. "The effect of Walmart and Target on property tax rates," Letters in Spatial and Resource Sciences, Springer, vol. 9(3), pages 309-327, October.

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    More about this item

    Keywords

    Wal-Mart; Medicaid; fiscal; Ohio; H71; R11; R51;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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