Economics/Finances Economic Development Within the Philadelphia Metropolitan Area (0812212312)

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Economics/Finances Economic Development Within the Philadelphia Metropolitan Area

Posted on 2010-03-16

Name:	Economics/Finances Economic Development Within the Philadelphia Metropolitan Area
ASIN/ISBN:	0812212312
Language:	English
File size:	1.26 Mb
Publisher:	Univ of Pennsylvania Pr
ISBN:	0812212312
Publish Date:	edition 1987
File Type:	PDF
Pages:	268 pages
File Size:	1,26 mb

Economics/Finances Economic Development Within the Philadelphia Metropolitan Area

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Economic Development Within the Philadelphia Metropolitan Area

Economists and policy makers have long questioned the effect of state and local taxes on economic development. According to Schmenner, economists have long argued that taxes had little impact on business location decisions, while development practitioners and elected officials ignored this advice and aggressively pursued development by using tax incentives. More recent research using improved data and methodologies has begun to show that taxes can make a difference, and the emerging consensus among economists now says that taxes do matter. This changing view among researchers is perhaps best exemplified in a 1991 study by Timothy J. Bartik [2]. Bartik examined 84 econometric studies completed since 1979 which assess the impact of state and local taxes on economic growth in the U.S. He concluded that the long run elasticity of business activity with respect to state and local taxes was between -.10 and -.60 for studies focusing on intermetropolitan or interstate business economic activity and between -1.0 and -3.0 for intrametropolitan areas. However, Bartik's study did not control for a variety of study characteristics that may have influenced the measured elasticity.

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