No abstract

Despite widespread adoption of creative class economic development strategies, one of its basic tenets—the connection between community tolerance (running through talented individuals and high-tech employment) and economic health and growth—has not been sufficiently tested. This analysis of 40 midsized Canadian urban areas finds a connection between diversity and gay and creative populations and economic health. Neither high-tech employment nor economic growth, however, was found to be linked to the other measures. Although there is some evidence that amenity- and creative class-based economic development strategies can be effective, they do not appear to be sufficient in themselves. Other local policies (e.g., basic marketing to tourists, infrastructure improvements, and traditional business attraction and retention strategies) combined with a measure of “place luck” seem to be important ingredients as well.

This paper examines trends in local economic development policies in Canadian and US cities over the past fifteen years. Using data drawn from surveys conducted at four points in time ‐ 1990, 1994, 2001, and 2005 ‐ the study provides a longitudinal assessment of change versus stability in overall approach toward economic development. Findings indicate that Canadian and US cities have followed relatively similar trajectories in the extent to which they use particular economic development policies. Overall, the most common economic development policies in both nations have been and continue to be very similar: infrastructure investment generally, land development, basic promotion, and the use of special events to attract and retain businesses and residents and to promote the community. Thus, there is a visible pattern of the “least of differences” among cities in Michigan and Ontario in their development strategies and approaches. Sommaire: Le présent article examine les tendances qui se sont dégagées des politiques de développement économique local dans les villes canadiennes et américaines, au cours des quinze dernières années. À l'aide des données tirées de sondages réalisés à quatre moments différents, à savoir en 1990, 1994, 2001 et 2005, l‘étude fournit une évaluation longitudinale des changements par rapport à la stabilité dans l'approche globale à l’égard du développement économique. Les résultats indiquent que les villes canadiennes et américaines ont suivi des trajectoires relativement similaires dans la mesure où elles ont recours à des politiques de développement économique particulières. Dans l'ensemble, les politiques de développement économique les plus courantes dans ces deux pays ont été et continuent d‘être très similaires: l'investissement dans l'infrastructure en général, l'aménagement du territoire, la promotion de base, et le recours à des événements spéciaux pour attirer et retenir les entreprises et les résidents et pour promouvoir la communauté. Ainsi, il existe parmi certaines villes du Michigan et de l'Ontario un modèle visible de la “moindre des différences” dans leurs stratégies et leurs méthodes de développement.

Looking across the growing creative class literature, several methodologies for measurement have been employed: analysis of census data and other economic, business, and quality of life indicators; case studies and other descriptive efforts; and surveys of business leaders and other experts. These methods have provided little overall sense of relative validity. This research examines the nature of the creative class using a variety of measures: occupational and demographic profiles, talent and diversity, an expert survey of successful downtowns, creative class accoutrements, and case studies. Specific research questions include the following: Are rankings on different indicators correlated? Do the same municipalities come up high on all indicators of the creative class? How do the different measurement systems relate to overall economic health and growth? Which measurement or combination of measurement systems appears most reliable?If vague concepts are vaguely understood, then their meaning will always be in doubt. If there is no agreement on how to define and measure the creative class, there is little prospect that it will provide useful public policy guidance. If no one knows how the creative class is constituted, or how their presence relates to economic growth, there are likely to be no effective policy levers. (Sands and Reese, 2008, p. 6)

No abstract

Because the use of tax abatements to foster local economic development is widespread despite uncertainty about their effectiveness, is it possible to allocate abatements in a way that increases the likelihood that tangible benefits will result? This research suggests that few municipalities place conditions on abatements, most never evaluate the performance of firms granted abatements, and abatement requests are seldom or never rejected. The project focuses on the implementation of tax abatements, explores the use of tax abatements over a relatively long time period, and makes explicit policy recommendations for more effective policy implementation. Changes in state enabling legislation targeting abatements to distressed areas and adding requirements for evaluation may produce more effective use of abatements at the local level.

The widespread use over the past two decades of Michigan's PA 198 Industrial Tax Abatement program provides an opportunity to assess the inter-urban equity impacts of this economic development tool. Not only has PA 198 been used relatively more often by suburban municipalities, local governments at the metropolitan periphery are more likely to use abatements to attract new plants and new jobs. The older central cities primarily use the program to retain existing jobs, albeit at high cost of lost tax revenues. On balance, it appears that PA 198 has done little to alter the location decisions of participating firms. Copyright 2006 by The Policy Studies Organization.

We examine the degree to which assessment practices in the City of Detroit have created substantial inequities in property tax payments across residential properties. Two key contributions of this article include: (1) inequities created by assessment practices are examined in a collapsed real estate market, and (2) quantile regression techniques are used to determine how assessment practices have altered assessment distributions within and across property value groups. Results show that current practices have created a wide range of property tax payments across properties with similar value (horizontal inequity), and similar tax payments for properties of differing values (vertical inequity).