Wal-Mart’s Impact on Local Revenue and Expenditure Instruments in Ohio, 1988–2003

Michael Hicks

Atlantic Economic Journal, 2007, vol. 35, issue 1, 77-95

Abstract: This research estimates fiscal impacts of Wal-Mart in Ohio from 1985 through 2003. Using a panel of counties, and accounting for spatial autocorrelation in an instrumental variable model I estimate impact of Wal-Mart and Super-Centers on selected revenues and transfer payments. Among the findings is that the presence of a Wal-Mart increases local commercial property tax assessments resulting in collection increases of between $350,000 and $1.3 million. There is also an 18–43% reduction in per capita EITC claims in a county. However, Medicaid expenditures experience growth which amount to roughly 16 additional cases attributable to a single Wal-Mart. The magnitude and statistical certainty of these findings, suggests that local fiscal intervention, either through incentives or a “Wal-Mart Tax” is unwarranted. Copyright International Atlantic Economic Society 2007

Keywords: Wal-Mart; Medicaid; fiscal; Ohio; H71; R11; R51 (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:kap:atlecj:v:35:y:2007:i:1:p:77-95

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DOI: 10.1007/s11293-006-9062-6

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