A Quantitative Analysis of Subsidy Competition in the U.S.
Open accessAbstract
I use a quantitative economic geography model to explore subsidy competition among U.S. states.I ask what motivates state governments to subsidize …rm relocations and quantify how strong their incentives are.I also characterize fully non-cooperative and cooperative subsidy choices and assess how far away we are from these extremes.I …nd that states have strong incentives to subsidize …rm relocations in order to gain at the expense of other states.I also …nd that observed subsidies are closer to cooperative than non-cooperative subsidies but the potential losses from an escalation of subsidy competition are large.
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Claims other papers make about this one
Each is checked against this paper’s own text: does it say what the citing paper says it does?
Subsidy competition is also a concern in other countries.
“Such competition is also a concern in other countries.See for exampleOssa (2015) for a general equilibrium analysis of subsidy competition in the U.S.”
From Economic reforms and industrial policy in a panel of Chinese cities (2016) · cites this paper as Ossa (2015)
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Cites
No references could be resolved yet.
Research works printed but not linked: 18
- Allen, Treb and Costas Arkolakis. 2014. "Trade and the Topography of the Spatial Econ- omy." Quarterly Journal of Economics 129(3): 1085-1140.
- Baldwin, Richard, Rikard Forslid, Philippe Martin, Gianmarco Ottaviano, and Frederic Robert-Nicoud. 2005. Economic Geography and Public Policy. Princeton, NJ: Princeton University Press.
- Davis, Morris and Francois Ortalo-Magne. 2011. "Household Expenditures, Wages, Rents." Review of Economic Dynamics 14: 248-261.
- Dekle, Robert, Jonathan Eaton, and Sam Kortum. 2007. "Unbalanced Trade." American Economic Review Papers and Proceedings 97(2): 351-355.
- Fujita, Masahisa, Paul Krugman, and Anthony Venables. 2001. The Spatial Economy: Cities, Regions, and International Trade. Cambridge, MA: MIT Press.
- Greenstone, Michael, Richard Hornbeck, and Enrico Moretti. 2010. "Identifying Agglom- eration Spillovers: Evidence from Winners and Losers of Large Plant Openings." Journal of Political Economy 118(3): 536-598.
- Handbury, Jesse and David Weinstein. 2015. "Goods Prices and Availability in Cities." The Review of Economic Studies 82(1): 258-296.
- Kline, Patrick and Enrico Moretti. 2014. "Local Economic Development, Agglomera- tion Economies, and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority." Quarterly Journal of Economics 129(1): 275-331.
- Krugman, Paul. 1991. "Increasing Returns and Economic Geography." Journal of Polit- ical Economy 99(3): 438-499.
- Krugman, Paul and Anthony Venables. 1995. "Globalization and the Inequality of Na- tions." Quarterly Journal of Economics 110(4): 857-880.
- Ossa, Ralph. 2011. "A "New Trade" Theory of GATT/WTO Negotiations." Journal of Political Economy 119(1): 122-152.
- Ossa, Ralph. 2012. "Pro…ts in the New Trade Approach to Trade Negotiations." American Economic Review Papers and Proceedings 104(12): 4104-4146.
- Ossa, Ralph. 2014. "Trade Wars and Trade Talks with Data." American Economic Review 104(12): 4104-46.
- Redding, Stephen. 2016. "Goods Trade, Factor Mobility and Welfare." Journal of Inter- national Economics 101: 148-167.
- Rogers, James. 2000. "The E¤ectiveness and Constitutionality of State Tax Incentive Policies for Locating Businesses: A Simple Game Theoretic Analysis." The Tax Lawyer 53(2): 431-458.
- Suarez Serrato, Juan and Owen Zidar. 2016, "Who Bene…ts from Corporate Tax Cuts? A Local Labor Market Approach with Heterogeneous Firms." American Economic Review 106(9): 2582-2624.
- Su, Che-Lin and Kenneth L. Judd. 2012. "Constrained Optimization Approaches to Es- timation of Structural Models." Econometrica 80(5): 2213-2230.
- Venables, Anthony. 1987. "Trade and Trade Policy with Di¤erentiated Products: A Chamberlinian-Ricardian Model." The Economic Journal 97(387): 700-717.
Cited by
Sorted by citations
Economic reforms and industrial policy in a panel of Chinese cities
Alder, S., Shao, L., & Zilibotti, F. (2016) · Journal of Economic Growth · doi:10.1007/s10887-016-9131-x · Cited by 435 · see citing works
- Authors
- Ossa, R.
- Affiliations
- Center for Economic and Policy Research (US)
- Corresponding author
- Ossa, Ralph
- ORCID
- Ossa, Ralph
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2015-02
- OpenAlex
- W4211133494
- Cited by
- 42
- References
- 0
- Citations by year
- 2024: 5 · 2023: 5 · 2022: 4 · 2021: 6 · 2020: 6 · 2019: 4 · 2018: 5 · 2017: 1 · 2016: 3 · 2015: 3
- Type
- report
- Language
- en
- Open access
- green
- doi.org
- Locations
- National Bureau of Economic Research (publishedVersion)
- Zurich Open Repository and Archive (University of Zurich) (acceptedVersion, other-oa)
- RePEc: Research Papers in Economics (submittedVersion)
- Zurich Open Repository and Archive (University of Zurich) (submittedVersion, other-oa)
- Zurich Open Repository and Archive (University of Zurich)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Regional Economics and Spatial Analysis
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Development and Regional Competitiveness
- Social Sciences › Political Science and International Relations › Local Government Finance and Decentralization
- Keywords
- subsidy competition, business relocation, industrial relocation, intergovernmental competition, economic geography model, regional economic development
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
