The Experts below are selected from a list of 114 Experts worldwide ranked by ideXlab platform
Andrew Hanson - One of the best experts on this subject based on the ideXlab platform.
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do location based Tax incentives attract new business establishments
Journal of Regional Science, 2011Co-Authors: Andrew Hanson, Shawn RohlinAbstract:This paper examines how offering Tax incentives in a local area affects the entry of new business establishments. We use the federal Empowerment Zone (EZ) program as a natural experiment to test this relationship. Using instrumental variables estimation, we find that the EZ Wage Tax credit is responsible for attracting about 2.2 new establishments per 1,000 existing establishments, or a total of 20 new establishments in EZ areas. New establishment growth is strongest in the retail (about 40 new establishments) and service (about five new establishments) sectors, and offset by declines or slower growth in other industries. Countless state and local governments offer a myriad of Tax incentives in an attempt to lure new business establishments into locating in their jurisdiction. These incentives include a range of Tax credits for investment in capital, job creation, research and de- velopment, and rehabilitation of structures. 1 Often, policy makers create incentives with the hope that they attract new establishments that become a catalyst for future economic growth. There are two primary challenges that arise in any attempt to determine the effect policy has on the location decisions of new business establishments. 2 First, policy is typically created for a single city or state, making it difficult to find a proper comparison group to construct a counterfactual for what would have happened in the absence of policy. Second, law-makers often craft policy in an attempt to either strengthen the local economy or change historic economic fortunes; therefore, incentives are a function of the current local economic situation, and the policies are endogenous to outcome measures of interest. These challenges often leave researchers with limited ability to identify the effects of offering Tax incentives on new establishment location, as standard methods do not separate trends in the local economy from the policy effects or may give biased results due
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utilization of employment Tax credits an analysis of the empowerment zone Wage Tax credit
Public Budgeting & Finance, 2011Co-Authors: Andrew HansonAbstract:This paper provides estimates of utilization for the Empowerment Zone (EZ) Wage Tax credit, a subsidy claimed by employers who operate in and hire residents of federally designated areas experiencing economic distress. The EZ credit is currently the largest employer-based Wage Tax credit in the federal Tax code in terms of dollars claimed, with almost $250 million claimed in 2002. I show that about 6.4 percent (and at least 3.5 percent) of the working age population was claimed under the EZ Wage credit in 1999. In addition, I estimate that 24.2 percent (and at least 13.1 percent) of those employed inside of the target area were claimed for the credit. I create these national estimates of use with information on credit dollars claimed from the Internal Revenue Service and population data on the eligible population from the census. These measures of Tax credit use are an alternative to the use rate of firms that are presented in the existing literature, and reveal how effective the credit is at reaching residents of the target area.
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the effect of location based Tax incentives on establishment location and employment across industry sectors
Public Finance Review, 2011Co-Authors: Andrew Hanson, Shawn RohlinAbstract:This article examines the potential for location-based employment Tax incentives to have a differential effect on establishment location and employment across industry sectors. The authors model the differential effect of the location-based federal Empowerment Zone (EZ) Wage Tax credit on equilibrium labor and total cost savings across industry sectors. The model guides the empirical work, as the authors test the effect of the program across industry sectors. The empirical analysis shows that location-based Tax incentives have a positive effect on firm location in some of the industries their model predicts and a negative effect in industries that could be crowded out.
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utilization of employment Tax credits an analysis of employees eligible for the empowerment zone Wage Tax credit
Social Science Research Network, 2006Co-Authors: Andrew HansonAbstract:This paper gives the first estimates for employee use of the Empowerment Zone (EZ) Wage Tax credit, a Wage subsidy claimed by employers who operate in and hire residents of federally designated areas experiencing economic distress in the 1990s. I show that about 6.4 percent (and at least 3.5 percent) of the working age population was claimed under the EZ Wage credit for 1999. In addition, I estimate that 24.2 percent (and at least 13.1 percent) of those employed inside of the target area were claimed for the credit. These national estimates of use are created using information on credit dollars claimed from the IRS as well as population data on those eligible to be claimed from the Census. The measures of Tax credit use presented in this paper are an alternative to firm use rates presented in the literature, and reveal how effective the credit is at reaching residents of the target area.
Shawn Rohlin - One of the best experts on this subject based on the ideXlab platform.
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do location based Tax incentives attract new business establishments
Journal of Regional Science, 2011Co-Authors: Andrew Hanson, Shawn RohlinAbstract:This paper examines how offering Tax incentives in a local area affects the entry of new business establishments. We use the federal Empowerment Zone (EZ) program as a natural experiment to test this relationship. Using instrumental variables estimation, we find that the EZ Wage Tax credit is responsible for attracting about 2.2 new establishments per 1,000 existing establishments, or a total of 20 new establishments in EZ areas. New establishment growth is strongest in the retail (about 40 new establishments) and service (about five new establishments) sectors, and offset by declines or slower growth in other industries. Countless state and local governments offer a myriad of Tax incentives in an attempt to lure new business establishments into locating in their jurisdiction. These incentives include a range of Tax credits for investment in capital, job creation, research and de- velopment, and rehabilitation of structures. 1 Often, policy makers create incentives with the hope that they attract new establishments that become a catalyst for future economic growth. There are two primary challenges that arise in any attempt to determine the effect policy has on the location decisions of new business establishments. 2 First, policy is typically created for a single city or state, making it difficult to find a proper comparison group to construct a counterfactual for what would have happened in the absence of policy. Second, law-makers often craft policy in an attempt to either strengthen the local economy or change historic economic fortunes; therefore, incentives are a function of the current local economic situation, and the policies are endogenous to outcome measures of interest. These challenges often leave researchers with limited ability to identify the effects of offering Tax incentives on new establishment location, as standard methods do not separate trends in the local economy from the policy effects or may give biased results due
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the effect of location based Tax incentives on establishment location and employment across industry sectors
Public Finance Review, 2011Co-Authors: Andrew Hanson, Shawn RohlinAbstract:This article examines the potential for location-based employment Tax incentives to have a differential effect on establishment location and employment across industry sectors. The authors model the differential effect of the location-based federal Empowerment Zone (EZ) Wage Tax credit on equilibrium labor and total cost savings across industry sectors. The model guides the empirical work, as the authors test the effect of the program across industry sectors. The empirical analysis shows that location-based Tax incentives have a positive effect on firm location in some of the industries their model predicts and a negative effect in industries that could be crowded out.
Kenneth L Judd - One of the best experts on this subject based on the ideXlab platform.
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optimal Taxation and spending in general competitive growth models
Journal of Public Economics, 1999Co-Authors: Kenneth L JuddAbstract:Abstract We find that the optimal long-run Tax on capital income is zero even if the capital stock does not converge to a steady state nor to a steady state growth rate. The optimal Tax on human capital is also zero if human capital is not a final good, but the long-run Wage Tax is not generally zero. We argue that “consumption” Tax proposals, such as the Flat Tax, are not consumption Taxes, and are biased against human capital.
Erkki Koskela - One of the best experts on this subject based on the ideXlab platform.
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analysis of labor Tax progression under heterogeneous domestic labor markets and flexible outsourcing
2010Co-Authors: Erkki KoskelaAbstract:What are the impacts of labor Tax reform on Wage setting and employment to keep the relative Tax burden per low-skilled and high-skilled workers constant in the case of heterogeneous domestic labor markets, i.e. imperfect competition in low-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of Tax progression by raising the Wage Tax and the Tax exemption for the low-skilled workers will decrease the Wage rate and increase labor demand of low-skilled workers, whereas it will decrease (increase) employment of high-skilled workers in CES utility function when the elasticity of substitution between consumption and leisure is higher (lower) than one. A higher degree of Wage Tax progression for the high-skilled worker will have no effect on the high-skilled Wage in the presence of CES utility function.
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outsourcing cost and Tax progression under nash Wage bargaining with flexible outsourcing
Research Papers in Economics, 2010Co-Authors: Erkki KoskelaAbstract:It is analyzed the impacts of outsourcing cost and Wage Tax progression under labor market imperfections with Nash Wage bargaining and flexible outsourcing. With sufficiently strong (weak) labor market imperfection, lower outsourcing cost has a Wage-moderating (Wage-increasing) effect so that there is a negative (positive) effect on equilibrium unemployment. Higher Tax progression, to keep the relative Tax burden per worker constant, has a Wage moderating and a positive effect on employment and negative effect on outsourcing.
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the effects of labour Tax progression under nash Wage bargaining and flexible outsourcing
Research Papers in Economics, 2008Co-Authors: Erkki KoskelaAbstract:This paper studies in the presence of flexible outsourcing the effects of outsourcing costs, productivity of outsourcing, Wage Tax and Tax exemption in an imperfectly competitive labour markets when labour unions and firms negotiate Wages and the impacts of labour Tax progression on domestic Wage setting and employment. The Wage elasticity of domestic labour demand is higher than in the case of strategic outsourcing and a decreasing function of the outsourcing cost, an increasing function both of the productivity of outsourcing and of the Wage rate. With sufficiently strong (weak) labour market imperfections a lower outsourcing cost has a Wage-moderating (Wage-increasing) effect. Finally, increasing the degree of Tax progression, to keep the relative Tax burden per worker constant, has a Wage-moderating effect and a positive effect on domestic employment and a negative effect on outsourcing.
Matthias Wrede - One of the best experts on this subject based on the ideXlab platform.
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a distortive Wage Tax and a countervailing commuting subsidy
Journal of Public Economic Theory, 2009Co-Authors: Matthias WredeAbstract:Within a second-best duocentric urban economics framework where labor income Taxation distorts workplace choices on account of commuting costs, this paper studies a commuting subsidy, which distorts land use. It is shown that a commuting subsidy increases welfare if and only if it shifts labor supply from less to more productive business districts.
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a distortive Wage Tax and a countervailing commuting subsidy
Journal of Public Economic Theory, 2009Co-Authors: Matthias WredeAbstract:Within a second-best duocentric urban economics framework where labor income Taxation distorts workplace choices on account of commuting costs, this paper studies a commuting subsidy, which distorts land use. It is shown that a commuting subsidy increases welfare if and only if it shifts labor supply from less to more productive business districts. Copyright © 2009 Wiley Periodicals, Inc..
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distortive Wage Tax and commuting subsidies
2006Co-Authors: Matthias WredeAbstract:Within an urban economics framework, this paper studies the implications of a Wage Tax which distorts workplace choices on account of commuting costs. Commuting subsidies increase welfare if and only if they shift labor supply from less to more productive business districts.
