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Category Archives: Business incentives
Right-to-work laws and state economic development strategies
A high-profile issue right now, especially in Michigan, is the effects of state right-to-work laws on state economic development. As an economic development strategy, the adoption of a state right-to-work law is an uncertain and risky strategy, as I have … Continue reading
All business incentives are not created equal
Kenneth Thomas has a useful blog post pointing out that the New York Times database on business incentives, which accompanies Louise Story’s series, includes sales tax exemptions for business purchases of goods and services. Thomas’s figures, which are consistent with … Continue reading
Film production incentives as economic development policy: why are they problematic?
Louise Story’s series in the New York Times on state and local business incentives concludes with an article (December 4, 2012) on film subsidies, highlighting Michigan’s experience. Why are film production incentives so problematic as economic development policy? I wrote … Continue reading
What should policymakers do about state and local business incentives?
Louise Story of the New York Times has a series, starting December 2nd (2012), on state and local business incentives. Full disclosure: I was interviewed by Ms. Story for the series, and I am quoted in the first article. From … Continue reading
Is our political system really interested in focusing on job creation for the long-term unemployed?
The more I read about the inside political debates during the Great Recession and its aftermath, the more I doubt whether the current U.S. political system puts a top priority on boosting employment among the long-term unemployed. For example, based … Continue reading
Posted in Business incentives, Incentive design issues
Boosting the recovery and long-run economic growth through job-creation incentives for the long-term unemployed, and early education investments
The Congressional Budget Office recently released a report exploring why this economic recovery from the recession trough has been unusually slow. As the report shows, as of the second quarter of 2012, 3 years after the Great Recession’s trough in … Continue reading
Why some business tax credits are so costly per job created
A just-posted working paper, by my colleague Kevin Hollenbeck and me, examined the state of Washington’s business tax credit for R&D spending. Our conclusion is that this tax credit is quite costly per job created. The cost per job-year created … Continue reading
Posted in Business incentives, Incentive design issues
New York Times magazine article on Kalamazoo Promise
Journalist Ted Fishman’s article on the Kalamazoo Promise (see previous blog post for description of the Promise) appears in the September 16 Sunday magazine of the New York Times. The article can be found here. The article describes the many … Continue reading
Business taxation and state economic development goals
The Upjohn Institute has posted a recent working paper of mine, co-authored with my colleague George Erickcek, that looks at how different types of business tax cuts affect economic development goals such as job creation. The Institute’s website also right … Continue reading
Posted in Business incentives, Incentive design issues
What is a good business climate for job creation? Changing the conventional wisdom
Most people use some simple principles to guide their judgments about public policy. I think this is quite understandable. Why should we expect most people to spend their time trying to interpret conflicting empirical studies? As a recent blog post … Continue reading
