Do business tax incentives contribute to a divergence in economic growth?

Ernest Goss, Joseph M. Phillips

Research output: Contribution to journalArticle

20 Citations (Scopus)

Abstract

A lack of detailed data on state tax incentive programs has limited the assessment of their economic impacts. However, in 1987, the Nebraska legislature, as part of its new business tax incentive initiative, required that the state Department of Revenue collect data on all business tax incentive agreements and report findings yearly. Nebraska's legislative mandate produced a unique data set for assessing the impact of a business tax incentive program. Using these data, this article evaluates business tax incentives across Nebraska's 93 counties during 1987 to 1995 and concludes that qualifying business investment (a) had a positive and statistically significant impact on economic growth for low-unemployment counties, (b) had no statistically significant impact on economic growth for high-unemployment counties, and (c) tended to be undertaken in areas with historically higher investment activity, thus contributing to greater economic performance differences among counties in the state.

Original languageEnglish
Pages (from-to)217-228
Number of pages12
JournalEconomic Development Quarterly
Volume13
Issue number3
StatePublished - Aug 1999
Externally publishedYes

Fingerprint

tax incentive
taxes
divergence
economic growth
incentive
unemployment
economic impact
revenue
Economic growth
Business taxes
Divergence
Tax incentives
county
lack
economics
performance

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Development
  • Urban Studies

Cite this

Do business tax incentives contribute to a divergence in economic growth? / Goss, Ernest; Phillips, Joseph M.

In: Economic Development Quarterly, Vol. 13, No. 3, 08.1999, p. 217-228.

Research output: Contribution to journalArticle

@article{15de38691be54095b99965c5f0b7894a,
title = "Do business tax incentives contribute to a divergence in economic growth?",
abstract = "A lack of detailed data on state tax incentive programs has limited the assessment of their economic impacts. However, in 1987, the Nebraska legislature, as part of its new business tax incentive initiative, required that the state Department of Revenue collect data on all business tax incentive agreements and report findings yearly. Nebraska's legislative mandate produced a unique data set for assessing the impact of a business tax incentive program. Using these data, this article evaluates business tax incentives across Nebraska's 93 counties during 1987 to 1995 and concludes that qualifying business investment (a) had a positive and statistically significant impact on economic growth for low-unemployment counties, (b) had no statistically significant impact on economic growth for high-unemployment counties, and (c) tended to be undertaken in areas with historically higher investment activity, thus contributing to greater economic performance differences among counties in the state.",
author = "Ernest Goss and Phillips, {Joseph M.}",
year = "1999",
month = "8",
language = "English",
volume = "13",
pages = "217--228",
journal = "Economic Development Quarterly",
issn = "0891-2424",
publisher = "SAGE Publications Inc.",
number = "3",

}

TY - JOUR

T1 - Do business tax incentives contribute to a divergence in economic growth?

AU - Goss, Ernest

AU - Phillips, Joseph M.

PY - 1999/8

Y1 - 1999/8

N2 - A lack of detailed data on state tax incentive programs has limited the assessment of their economic impacts. However, in 1987, the Nebraska legislature, as part of its new business tax incentive initiative, required that the state Department of Revenue collect data on all business tax incentive agreements and report findings yearly. Nebraska's legislative mandate produced a unique data set for assessing the impact of a business tax incentive program. Using these data, this article evaluates business tax incentives across Nebraska's 93 counties during 1987 to 1995 and concludes that qualifying business investment (a) had a positive and statistically significant impact on economic growth for low-unemployment counties, (b) had no statistically significant impact on economic growth for high-unemployment counties, and (c) tended to be undertaken in areas with historically higher investment activity, thus contributing to greater economic performance differences among counties in the state.

AB - A lack of detailed data on state tax incentive programs has limited the assessment of their economic impacts. However, in 1987, the Nebraska legislature, as part of its new business tax incentive initiative, required that the state Department of Revenue collect data on all business tax incentive agreements and report findings yearly. Nebraska's legislative mandate produced a unique data set for assessing the impact of a business tax incentive program. Using these data, this article evaluates business tax incentives across Nebraska's 93 counties during 1987 to 1995 and concludes that qualifying business investment (a) had a positive and statistically significant impact on economic growth for low-unemployment counties, (b) had no statistically significant impact on economic growth for high-unemployment counties, and (c) tended to be undertaken in areas with historically higher investment activity, thus contributing to greater economic performance differences among counties in the state.

UR - http://www.scopus.com/inward/record.url?scp=0033419266&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0033419266&partnerID=8YFLogxK

M3 - Article

VL - 13

SP - 217

EP - 228

JO - Economic Development Quarterly

JF - Economic Development Quarterly

SN - 0891-2424

IS - 3

ER -