An Equilibrium Model of Tax Abatement

City and Firm Characteristics As Determinants of Abatement Generosity

Bibliographic Data

ID6405397
AuthorsPatricia Byrne, Patricia Byrnes (University of Illinois at Springfield), Mary K Marvel, Kala Seetharam Sridhar (0000-0002-7739-9297, The Ohio State University), Kala Sridhar (The Ohio State University)
Year1999
Volume34
Issue6
Pages805-819
Publication date1999-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueUrban Affairs Review (JOURNAL)
Journal identifiersISSN: 1078-0874 • E-ISSN: 1552-8332
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/10780879922184211
OpenAlexW2059398753
LanguageEN
Citations received6
References cited17

The model of tax abatements includes taxing district and firm characteristics to explain a locality’s abatement generosity. The community-level characteristics are for the school district in the enterprise zone that grants the tax abatement. Firm characteristics include the size, credit rating, number of newly created and/or retained jobs, and the quality of the jobs. Generosity of abatements is measured by the percentage of taxes abated. Firms that had credit ratings showing them to be more suitable risks fared better in negotiations; those that brought newly created jobs garnered more generous abatements; and those that promised retained jobs in the negotiation fared less well

Business · Economics · Generosity · Labour economics · Microeconomics · Negotiation · Political science · Public economics · Quality (philosophy · Tax credit · Fiscal Policy and Economic Growth · Law · Local Government Finance and Decentralization · Taxation and Compliance Studies

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