Abstract:
Similar to many communities throughout the United States, the City of El Paso, Texas utilizes property tax abatements as a means for inducing companies to invest in the local economy. Abatements in El Paso were first introduced in 1988. Although many studies have examined the effectiveness of municipal abatement policies, most of those efforts rely on survey questionnaires or cross-sctional data. This study employs a time series data set to examine whether municipal authorities have achieved the objectives of the abatement program in El Paso.