Do Location‐Based Tax Incentives Improve Quality of Life and Quality of Business Environment?

32 Pages Posted: 9 Jan 2014

See all articles by C. Lockwood Reynolds

C. Lockwood Reynolds

Kent State University

Shawn Rohlin

Kent State University - Department of Economics

Date Written: January 2014

Abstract

We examine how location‐based tax incentives affect quality of life and business environment through changes in property values and equilibrium wages. Using the federal Empowerment Zone program, we determine whether offering tax incentives to firms improves the welfare of the citizens and attractiveness to firms. We demonstrate that quality of life methodologies can be applied using small geographically aggregated data, such as census block groups. We find that the tax incentives offered by the program notably enhances the quality of business environment for firms in the area while modestly improving the quality of life for the individuals living in the area.

Suggested Citation

Reynolds, C. Lockwood and Rohlin, Shawn, Do Location‐Based Tax Incentives Improve Quality of Life and Quality of Business Environment? (January 2014). Journal of Regional Science, Vol. 54, Issue 1, pp. 1-32, 2014, Available at SSRN: https://ssrn.com/abstract=2376563 or http://dx.doi.org/10.1111/jors.12035

C. Lockwood Reynolds (Contact Author)

Kent State University ( email )

Kent, OH 44242
United States

Shawn Rohlin

Kent State University - Department of Economics ( email )

Kent, OH 44242
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
3
Abstract Views
235
PlumX Metrics