Measuring the Distribution of Economic Development Tax Incentive Intensity

Greenbaum, Robert T.; Russell, Blair; Petras, Tricia L.

doi:10.1177/0891242409358323

Cited by 15 publications

(14 citation statements)

References 40 publications

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“…From 2009 through 2016, policymakers in over a dozen states eliminated incentives and several others reduced expenditures (Thom and An 2017). 4 Circumstances behind those reversals varied from state to state but tended to include some combination of shifting legislative priorities, awareness of poor oversight and fraud, and growing evidence that motion picture industry incentives fail to create permanent jobs and/or fail to yield a positive return on investment (e.g., Adkisson 2013, Button 2016, Geballe 2009, Greenbaum et al 2010, Gross and Stogel 2010, Luther 2010 Table 1 summarizes the findings of incentive program evaluations conducted by multiple state government agencies. The only difference across these evaluations is not whether incentives were a net taxpayer loss, but rather to what degree.…”

Section: Background On the Film And Production Tax Creditmentioning

confidence: 99%

Time to Yell “Cut?” An Evaluation of the California Film and Production Tax Credit for the Motion Picture Industry

Thom¹

2018

CJPP

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Enacted in 2009, California's Film and Production Tax Credit was a policy reaction to fears that the state had lost motion picture industry jobs to other states and countries. The incentive has since been allocated over $1 billion in taxpayer funding. Advocates hail the tax credit as a success, but is there evidence to support that claim? This study examines motion picture industry employment in California from 1991 through 2016 to determine the impact of the Film and Production Tax Credit and competing incentives offered by other governments. Results show the tax credit had no significant effect on changes in three occupational categories associated with the motion picture industry. Employment was similarly unaffected by competing incentives. Motion picture industry employment in California instead appears to track the national labor market. These findings were robust to several alternative measures and model specifications and advise that California policymakers should eliminate the Film and Production Tax Credit as soon as possible.

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Section: Background On the Film And Production Tax Creditmentioning

confidence: 99%

Time to Yell “Cut?” An Evaluation of the California Film and Production Tax Credit for the Motion Picture Industry

Thom¹

2018

CJPP

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“…Like spending, program variables may also be endogenous to economic conditions. In upon economic conditions (Greenbaum, Russell, and Petras 2010). Empirical evidence is inconclusive with regard to the direction of bias, though.…”

Section: Background On Nontax Capital Subsidies and Job Creationmentioning

confidence: 99%

Jobless Capital? The Role of Capital Subsidies

Patrick

2015

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Using tax abatements, financial incentives, and public investments to attract (or retain) firms is the primary economic development tool for many local governments. Often local job creation policies focus on increasing capital through grants, low-interest financing, and other economic development incentives. Theory predicts that capital subsidies induce firm behaviors that limit their job creation effects. This paper employs the Incentives Environment Index, constructed from state constitutional provisions that limit and structure the ability of state and local governmental entities to aid private enterprises, and five-year county panels to test theoretical predictions on county capital expenditure and input mixes as well as industry establishment shares. The results indicate the act of increasing capital subsidy tools is associated with capital-labor substitution, decreased employment density, and changes in local industry mix. Results are robust to alternative empirical specifications and measures of capital subsidy availability. JEL Classification Codes: R32, H25, R11

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“…In fact, the policy literature indicates that economic development policy does react and evolve based upon economic conditions (Greenbaum, Russell, and Petras, 2010). Empirical evidence is, however, inconclusive with regard to the direction of bias.…”

Section: Measuring Incentivesmentioning

confidence: 99%

Does Increasing Available Non-Tax Economic Development Incentives Result in More Jobs?

Patrick¹

2014

National Tax Journal

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This paper examines the job creation effects of state and local non-tax incentives for capital investment, which are relatively understudied in the literature. The paper's primary contribution is the creation of an Incentive Environment Index (IEI) from state constitutional provisions that limit and structure the ability of state and local governmental entities to aid private enterprises. Comparing estimation results across methods reveals that unobserved heterogeneity results in overstatement of policy effects. The most robust estimates indicate that increasing the ability of governments to aid private enterprise has a signifcant negative medium-term effect on rural county employment levels but otherwise has no effect on employment levels or growth.

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Measuring the Distribution of Economic Development Tax Incentive Intensity

Cited by 15 publications

References 40 publications

Time to Yell “Cut?” An Evaluation of the California Film and Production Tax Credit for the Motion Picture Industry

Time to Yell “Cut?” An Evaluation of the California Film and Production Tax Credit for the Motion Picture Industry

Jobless Capital? The Role of Capital Subsidies

Does Increasing Available Non-Tax Economic Development Incentives Result in More Jobs?

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