Tax Incentive Requests and Offers in a State Economic Development Program

Todd Gabe and David S. Kraybill
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David S. Kraybill: The Ohio State University

The Review of Regional Studies, 1998, vol. 28, issue 3, 1-14

Abstract: This paper analyzes expansion, relocation, and new business projects in Ohio between 1993 and 1995 to determine the characteristics that influence a project's probability of receiving a tax incentive from the state. Empirical results indicate that establishment size and age, high local wages, and high local air pollution levels decrease a project's probability of receiving tax assistance from the state government. The number of new jobs promised by the business establishment and the size of the county labor force increase a project's likelihood of receiving an incentive.

Date: 1998
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