Simulating the Effects of the Tax Credit Program of the Michigan Economic Growth Authority on Job Creation and Fiscal Benefits

Timothy Bartik () and George Erickcek

Economic Development Quarterly, 2014, vol. 28, issue 4, 314-327

Abstract: This article simulates job and fiscal impacts of the Michigan Economic Growth Authority’s tax credit program for job creation, commonly called “MEGA.†Under plausible assumptions about how such credits affect business location decisions, the net costs per job created of the MEGA program are simulated to be of modest size. The job creation impacts of MEGA are simulated to be considerably larger than devoting similar dollar resources to general business tax cuts. The simulation methodology developed here is applicable to incentives in other states.

Keywords: incentives; job creation; fiscal impact; business taxes (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ecdequ:v:28:y:2014:i:4:p:314-327

DOI: 10.1177/0891242414548893

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