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Assesing the Impact of Local Incentives on Capital Cost: The Case of the Indiana Era Program

Transylvanian Review of Administrative Sciences

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Title Assesing the Impact of Local Incentives on Capital Cost: The Case of the Indiana Era Program
 
Creator DALEHITE, Esteban G.; Assistant Professor, School of Public and Urban Affairs, Florida International University
 
Subject
 
Description Public policy makers and administrators around the world recurrently face the question of whether to grant tax privileges to businesses in order to promote investment, jobs, or economic development in general. This article analyzes a very popular form of local incentive, the property tax abatement, and its ability to reduce capital cost. The research question is: By how much do property tax abatements reduce the capital cost of business and homes? Results show that abatements can account for quite a large range of possible percentage reductions in the price of investment for firms. The findings provide public administrators and policy makers with data and a tool to assess the benefits that firms derive from abatements. This in turn can contribute to more informed abatement decisions and to an overall assessment concerning the suitability of this tool to promote economic development.
 
Publisher Babes Bolyai University
 
Contributor
 
Date 2006-02-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://rtsa.ro/tras/index.php/tras/article/view/224
 
Source Transylvanian Review of Administrative Sciences; 2006: Issue No. 16 E/February; 5-11
18422845
 
Language eng
 
Relation http://rtsa.ro/tras/index.php/tras/article/view/224/219
 
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