Do Tax Increment Finance Districts Stimulate Growth in Real Estate Values?

Posted: 31 Aug 2010 Last revised: 15 Sep 2011

See all articles by David Merriman

David Merriman

University of Illinois at Chicago - Institute of Government and Public Affairs; Department of Public Administration

Mark Skidmore

Michigan State University - Department of Agricultural Economics

Russell Kashian

University of Wisconsin - Whitewater - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: August 30, 2010

Abstract

We use data on all Wisconsin municipalities during the period 1990 to 2003 to study the effect of tax increment finance (TIF) on economic development. We use appropriate statistical techniques to measure the impact of TIF and control variables on aggregate property values. We also examine the possibility communities that use TIF are self-selected. We find little evidence that TIF has led to significant increases in aggregate property values or that TIF increases the total value of residential and manufacturing property within a community. Surprisingly, we find positive impacts for commercial TIF districts.

Keywords: tax increment finance, economic development, property tax

JEL Classification: R00, R12, R28

Suggested Citation

Merriman, David and Skidmore, Mark L. and Kashian, Russell, Do Tax Increment Finance Districts Stimulate Growth in Real Estate Values? (August 30, 2010). Real Estate Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1668868

David Merriman (Contact Author)

University of Illinois at Chicago - Institute of Government and Public Affairs

Chicago, IL 60607
United States

Department of Public Administration ( email )

400 S Peoria St.
2122 AEH (MC278)
Chicago, IL 60607
United States

Mark L. Skidmore

Michigan State University - Department of Agricultural Economics ( email )

East Lansing, MI 48824
United States

Russell Kashian

University of Wisconsin - Whitewater - Department of Economics ( email )

800 West Main Street
Whitewater, WI 53190
United States

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