By Jeremy Horpedahl, ACRE Director The Arkansas General Assembly convenes for the 2023 general session on January 9, 2023. Over the weeks and months that follow, the Legislature will consider bills on a wide variety of issues affecting individuals and businesses in Arkansas. Researchers at ACRE have been hard at work since the last legislative […]
Should Attracting Business to Arkansas Rely on Legislation That Plays Favorites?
by Dr. Jeremy Horpedahl The arrival of Pittsburgh-based U.S. Steel Corp’s new sustainable and technologically advanced mill in Osceola, Arkansas promises to bring jobs and revenue to the state. This is something most of us can get behind. However, the way the deal was secured raises concerns for a free and fair marketplace. The legislature […]
Tax Incentive Bill Unwise Use of Funds, Says ACRE Researcher
By Caleb Taylor ACRE Legislative Research Associate Nathan Smith recently testified against legislation expanding tax credits for some businesses in Arkansas. Smith said the bill would be “basically just a giveaway of millions of dollars a year to shareholders of these companies.” Senate Bill 543 sponsored by State Sen. David Wallace and State Rep. Joe […]
ACRE Expert Testifies on Transparency for Economic Development Incentives
By Caleb Taylor Should local public officials be able to meet in secret to discuss economic development projects? House Bill 1280 sponsored by State Rep. Delia Haak R-District 91 and State Sen. Lance Eads R-District 7 would amend Arkansas’s Freedom of Information Act (FOIA) to allow for an executive session to be called by local […]
Do Economic Development Incentives Work?
By Caleb Taylor How effective are Arkansas’s economic development incentives? Not very, according to ACRE Research Fellow Erica Smith in an op-ed published on May 11 in Arkansas Business entitled “Arkansas’ Ineffective Incentives.” Smith writes about the economic literature on economic development incentive programs such as Arkansas’s Quick Action Closing Fund (QACF) and concludes that […]
Economics Student of the Year Is ACRE Fellow Erica Smith
By Caleb Taylor Congrats to ACRE Undergraduate Research Fellow and new UCA alumnae Erica Smith for being named economics student of the year by the UCA College of Business! Smith plans to begin her professional career with a few years working in supply chains and learning about logistics before pursuing a graduate degree. Erica majored […]
ACRE Student Spotlight: Erica Smith
By Caleb Taylor Is there a connection between getting re-elected and which counties get economic development incentives? A new working paper entitled “Do Politicians Use Targeted Economic Incentives for Political Gains? Evidence from Arkansas Gubernatorial Elections” co-authored by ACRE Undergraduate Research Fellow Erica Smith, ACRE Affiliated Researcher and UCA Lecturer I of Economics Jacob Bundrick, […]
Bundrick Questions Benefits of Economic Development Incentives
By Caleb Taylor Are economic development incentives a cost or benefit to Arkansas? ACRE Affiliated Researcher and UCA Lecturer I of Economics Jacob Bundrick was quoted in an article in the Arkansas Democrat-Gazette titled “Tax incentives audit cites impact on state; critics doubt programs key to luring firms,” published on December 14. The article focuses […]
Targeted business subsidies fail to improve incomes or poverty rates
By Caleb Taylor A frequently used Arkansas business subsidy program largely fails to increase incomes or lower poverty rates over the long term, according to the latest research from two UCA academics. ACRE-Affiliated Researcher and UCA Lecturer of Economics Jacob Bundrick and UCA Assistant Professor of Economics Dr. Weici Yuan’s researched the Quick Action Closing […]
The Hidden Costs of Arkansas’s Economic Development Incentives
By Caleb Taylor What are the costs of Arkansas’s economic development incentives? ACRE Policy Analyst Jacob Bundrick discussed this and more with the Faulkner County Tea Party on Thursday, May 9th at Larry’s Pizza in Conway. During his presentation, Bundrick discussed the fiscal costs, opportunity costs and the “crowding out” of existing businesses that arise […]