[cover]

Industrial Incentives

Competition Among American States and Cities

Peter S. Fisher and Alan H. Peters
University of Iowa

Economic development incentives awarded by states and municipalities for new and expanded plants are often quite controversial. Some argue that these incentives as a waste of tax dollars that could be better spent on education and infrastructure. Others defend incentives as a practical means of fostering much-needed employment growth in economically distressed areas.

This book by Professors Peter S. Fisher and Alan H. Peters offers clear and concise information on what is often an emotionally charged subject. It is the first significant attempt to quantify the development efforts made by state and local governments. The authors' extensive research focuses on tax and incentive policies across the 24 most industrialized states in the U.S.A. and a sample of 112 cities from within those states. From this work they are able to reveal

  • the extent to which incentive policies are concentrated in economically distressed localities
  • the redistributive effects of state and local economic incentive programs
  • whether states subsidize competition between municipalities
  • whether high-incentive municipalities exist in high-incentive states
  • what proportion of local incentive packages is discretionary and what proportion is entitlement (nondiscretionary)
  • what types of firms are targeted with incentives, and what this says about the goals of incentive policy.
"Industrial Incentives provides an important contribution to the field of tax policy analysis. In clear, accessible language, Fisher and Peters describe and discuss the theoretical and practical difficulties presented by measuring the value of economic development incentives and, more importantly, the way to overcome these using their [Tax and Incentive Model].", National Tax Journal

"In an arena where policy initiatives are often informed by a perceived need to 'do something', rather than sound theory and evidence, Fisher and Peters have written a well argued and carefully documented book that moves the state of the art forward.", Regional Science & Urban Economics

Related titles
  • Reining in the Competition for Capital, Ann Markusen, Editor
  • Does "Trickle Down" Work?, Joseph Persky, Daniel Felsenstein, and Virginia Carlson
  • State Enterprise Zone Programs: Have They Worked?, Alan H. Peters and Peter S. Fisher
  • Who Benefits from State and Local Economic Development Policies?, Timothy J. Bartik
  • Bidding for Business: The Efficacy of Local Economic Development Incentives in a Metropolitan Area, John E. Anderson and Robert W. Wassmer
    Also visit our Economic Development and Local Labor Markets Research Hub.
    • "[Fisher and Peters'] research is the first rigorous study that provides us with significant information about the average magnitude of economic development incentives in the United States, how these incentives vary across different types of firms, and which states and cities offer the biggest incentives. It is painstakingly careful and fairminded. No serious discussion of federal, state, or local policy toward incentives should take place without taking account of their findings. Economic development researchers should consider this book a basic reference tool. Economic developers who want to know what the competition is doing should also find this book to be essential reading.", Timothy J. Bartik, W.E. Upjohn Institute

    305 pp. 1998
    $46 cloth ISBN 0-88099-184-4 / ISBN-13 978-0-88099-184-1
    $21 paper ISBN 0-88099-183-6 / ISBN-13 978-0-88099-183-4

    Shopping Cart Operations

    For MasterCard/Visa holders, accumulate titles in the Shopping Cart and submit your order electronically.

    Shopping Cart Operations

    Customer Service - for phone, fax or mail orders, if you have any questions, or if you'd like to download our order form.
    Alphabetical List of Books   |   Publications   |   Home Page