Firm Relocation Threats and Copy Cat Costs

Darin Wohlgemuth and Maureen Kilkenny

Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) from Center for Agricultural and Rural Development (CARD) at Iowa State University

Abstract: With increasing frequency, state governments offer incentive packages to keep companies from leaving. But these tax incentive packages can cost more than foregone revenues from the single threatening firm. Other firms are encouraged to demand similar tax breaks. The authors explicitly consider the role of these copy cats in determining a government's optimal response to firm relocation threats. The information may help governments distinguish for which cases offering incentives is a worthwhile investment.

Date: 1996-03
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https://www.card.iastate.edu/products/publications/pdf/95wp142.pdf Full Text (application/pdf)
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Related works:
Journal Article: Firm Relocation Threats and Copy Cat Costs (1998)
Working Paper: Firm Relocation Threats and Copy Cat Costs (1998)
Working Paper: Firm Relocation Threats and Copy Cat Costs (1996)
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Persistent link: https://EconPapers.repec.org/RePEc:ias:fpaper:95-wp142

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