Economics at your fingertips  

State Targeting of Business Investment: Does Targeting Increase Corporate Tax Revenue?

Peter Calcagno () and Frank L. Hefner

Journal of Regional Analysis and Policy, 2007, vol. 37, issue 2, 13

Abstract: State governments increasingly use financial incentives to target and attract firms. The li-terature on state supported development reports mixed results at best as to whether there are net economic benefits to the state economy. Little has been done, however, to investigate the benefits that politicians may receive by offering incentives. We hypothesize that state govern-ments benefit from offering financial incentives. Specifically, we use pooled cross sectional da-ta from 1981 and 1989 to develop a model to test whether a state government offering financial incentives increases state corporate tax revenue. We argue that increases in state corporate tax revenue may explain why it is in the government’s interest to target firms regardless of net economic benefit of financial incentives.

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.22004/ag.econ.132409

Access Statistics for this article

More articles in Journal of Regional Analysis and Policy from Mid-Continent Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

Page updated 2020-06-20
Handle: RePEc:ags:jrapmc:132409