What do business climate indexes teach us about state policy and economic growth?

Journal of Regional Science

Volumn 53, Issue 2, 2013, Pages 220-255

  Kolko, Jed ^a   Neumark, David ^b   Mejia, Marisol Cuellar ^c  

^a Trulia Inc   (United States)

^b UNIVERSITY OF CALIFORNIA   (United States)

^c PUBLIC POLICY INSTITUTE OF CALIFORNIA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

BUSINESS DEVELOPMENT; ECONOMIC DEVELOPMENT; ECONOMIC GROWTH; EMPLOYMENT; PRODUCTIVITY; RANKING; STATE-BUSINESS RELATIONS; WAGE;

EID: 84876987293     PISSN: 00224146     EISSN: 14679787     Source Type: Journal    
DOI: 10.1111/j.1467-9787.2012.00782.x     Document Type: Article

References (37)

1. Albouy, David. 2009. "What are Cities Worth? Land Rents, Local Productivity, and the Capitalization of Amenity Values," NBER Working Paper No. 14981, Cambridge, MA.
2. Bartik, Timothy J. 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, 3, 14-22.
3. Bartik, Timothy J. 1991. "Who Benefits from State and Local Economic Development Policies?" Kalamazoo, MI: W.E. Upjohn Institute for Employment Research.
4. Bauer, Paul W., Mark E. Schweitzer, and Scott Shane. 2012. "Knowledge Matters: The Long-Run Determinants of State Income Growth," Journal of Regional Science, 52(2), 240-255.
5. Beacon Hill Institute. "Metro Area Competitiveness Report 2007," Suffolk University, Boston, MA, available at: http://www.beaconhill.org/compete07/compete2007MetroBHI.pdf. Accessed January 31, 2012.
6. Besley, Timothy, and Anne Case. 1995. "Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits," Quarterly Journal of Economics, 110, 769-798.
7. Bittlingmayer, George, Liesl Eathington, and Arthur P. Hall. 2005. "Business Climate Indexes: Which Work, Which Don't, and What Can They Say About the Kansas Economy?" Research Report, Kansas, Inc., Topeka, KS.
8. Brueckner, Jan. 2003. "Strategic Interaction Among Governments: An Overview of Empirical Studies," International Regional Science Review, 26, 175-188.
9. Buss, Terry F. 2001. "The Effect of State Tax Incentives on Economic Growth and Firm Location Decisions: An Overview of the Literature," Economic Development Quarterly, 15, 90-105.
10. Carlton, Dennis W. 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," Review of Economics and Statistics, 65, 440-449.
11. Crain, W. Mark, and Katherine J. Lee. 1999. "Economic Growth Regressions for the American States: A Sensitivity Analysis," Economic Inquiry, 37, 242-257.
12. Erickson, Rodney A. 1987. "Business Climate Studies: A Critical Evaluation," Economic Development Quarterly, 1, 62-71.
13. Fisher, Peter. 2005. Grading Places, Washington, DC: Economic Policy Institute.
14. Gabriel, Stuart A., and Stuart S. Rosenthal. 2004. "Quality of the Business Environment Versus Quality of Life: Do Firms and Households Like the Same Cities?" Review of Economics and Statistics, 86, 438-444.
15. Garrett, Thomas, and Russell Rhine. 2010. "Economic Freedom and Employment Growth in U.S. States," Working Paper 2010-006A. Federal Reserve Bank of St. Louis, St. Louis, MO.
16. Glaeser, Edward, Hedi D. Kallal, Jose A. Scheinkman, and Andrei Shleifer. 1992. "Growth in Cities," Journal of Political Economy, 100, 1126-1152.
17. Glaeser, Edward L., and Matthew E. Kahn. 2004. "Sprawl and Urban Growth," in J.V. Henderson, and J.F. Thisse (eds.), Handbook of Regional and Urban Economics, Vol. 4. Amsterdam: Elsevier B.V., pp. 2482-2527.
18. Glaeser, Edward, Jed Kolko, and Albert Saiz. 2001. "Consumer City," Journal of Economic Geography, 1, 27-50.
19. Hanson, Andrew, and Shawn Rohlin. 2010. "Do Location-based Tax Incentives Attract New Business Establishments?" Journal of Regional Science, 51, 427-449.
20. Helms, L. Jay. 1985. "The Effect of State and Local Taxes on Economic Growth: A Time Series-Cross Section Approach," Review of Economics and Statistics, 67, 574-582.
21. Henderson, Vernon, Ari Kuncoro, and Matt Turner. 1995. "Industrial Development in Cities," Journal of Political Economy, 103, 1067-1090.
22. Holmes, Thomas. 1998. "The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders," Journal of Political Economy, 106, 667-705.
23. Kolko, Jed, and David Neumark. 2007. Business Location Decisions and Employment Dynamics in California. San Francisco, CA: Public Policy Institute of California.
24. Kolko, Jed, David Neumark, and Marisol Cuellar Mejia. 2011. "Public Policy, State Business Climates, and Economic Growth," NBER Working Paper No. 16968, Cambridge, MA.
25. Mendelsohn, Robert, William D. Nordhaus, and Daigee Shaw. 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, 84, 753-771.
26. Neumark, David, Brandon Wall, and Junfu Zhang. 2011. "Do Small Businesses Create More Jobs? New Evidence for the United States from the National Establishment Time Series," Review of Economics and Statistics, 93, 16-29.
27. Papke, Leslie E. 1991. "Interstate Business Tax Differentials and New Firm Location," Journal of Public Economics, 45, 47-68.
28. Parent, Olivier, and James P. LeSage. 2012. "Determinants of Knowledge Production and their Effects on Regional Economic Growth," Journal of Regional Science, 52(2), 256-284.
29. Plaut, Thomas, and Joseph Pluta. 1983. "Business Climate, Taxes and Expenditures, and State Industrial Growth in the United States," Southern Economic Journal, 50, 99-119.
30. Rappaport, Jordan, and Jeffrey Sachs. 2003. "The United States as a Coastal Nation," Journal of Economic Growth, 8, 5-46.
31. Reed, W. Robert. 2009. "The Determinants of U.S. State Economic Growth: A Less Extreme Bounds Analysis," Economic Inquiry, 47, 685-700.
32. Roback, Jennifer. 1982. "Wages, Rents, and Quality of Life," Journal of Political Economy, 90, 1257-1278.
33. Schumpeter, Joseph. 1942. Capitalism, Socialism, and Democracy. New York (republished in 1975): Harper.
34. Skoro, Charles. 1988. "Rankings of State Business Climates: An Evaluation of Their Usefulness in Forecasting," Economic Development Quarterly, 2, 138-152.
35. Tannenwald, Robert. 1997. "State Regulatory Policy and Economic Development," New England Economic Review, March/April, 83-99.
36. Wasylenko, Michael. 1997. "Taxation and Economic Development: The State of the Economic Literature," New England Economic Review, March/April, 37-52.
37. Wasylenko, Michael, and Therese McGuire. 1985. "Jobs and Taxes: The Effect of Business Climate on States' Employment Growth Rates," National Tax Journal, 38, 497-511.