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

Posted in Business incentives, Early childhood programs, Economic development

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

Posted in Business incentives, Economic development, Incentive design issues | 2 Comments

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

Posted in Business incentives, Economic development, Incentive design issues

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

Posted in Business incentives, Incentive design issues, National vs. state vs. local

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

Posted in Business incentives, Early childhood programs, Economic development

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