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Measuring the Distribution of Economic Development Tax Incentive Intensity

Author

Listed:
  • Robert T. Greenbaum

    (The Ohio State University, Columbus, OH, USA, greenbaum.3@osu.edu)

  • Blair D. Russell

    (The Ohio State University, Columbus, OH, USA)

  • Tricia L. Petras

    (Ohio University, Athens, OH, USA)

Abstract

The targeting of economic development incentives at distressed locations or particular industries is typically justified based on equity and efficiency grounds. However, existing empirical studies fail to fully explain the distribution of incentives in a region or state because they do not account for variations in the distribution of population or industries. This article contributes to the literature on the targeting of incentives in several important ways, using the example of Ohio. The distribution of economic incentives is examined using the intensity of incentives, which allows for examination of whether incentives are targeted to distressed locations or industries. Intensity of incentives is measured as the value or number of incentives weighted by the number of employees and firms in each location or industry. We find that policies are missing the mark if they are indeed intended to target areas of distress or particular industries.

Suggested Citation

  • Robert T. Greenbaum & Blair D. Russell & Tricia L. Petras, 2010. "Measuring the Distribution of Economic Development Tax Incentive Intensity," Economic Development Quarterly, , vol. 24(2), pages 154-168, May.
    • Handle: RePEc:sae:ecdequ:v:24:y:2010:i:2:p:154-168
    DOI: 10.1177/0891242409358323
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    References listed on IDEAS

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    2. Carlianne Patrick, 2014. "Does Increasing Available Non-Tax Economic Development Incentives Result in More Jobs?," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(2), pages 351-386, June.

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