By Aaron Newell Where should state governments’ target economic incentives? Should they attempt to boost already thriving counties, or should they focus on developing poorer counties? Dango Kumwenda, an ACRE Fellow and UCA MBA student, recently wrote an op-ed for the Arkansas Democrat-Gazette titled “Bad incentives: Rich counties benefit most,” arguing that Arkansas is misallocating […]
economic development
QACF Brings “No Increases” In Employment, Bundrick Says
By Caleb Taylor What is the Quick Action Closing Fund (QACF) and what reforms should be considered to protect taxpayers? Jacob Bundrick, a policy analyst at the Arkansas Center for Research in Economics, was on the Conduit News radio program Wednesday morning to answer these questions and more. The QACF allows the state to provide […]
What Path Should Arkansas Take On Economic Development?
By Caleb Taylor Is there a “more proven path” Arkansas should take for economic development? ACRE Policy Analyst Jacob Bundrick says yes in an op-ed published in the Arkansas Democrat-Gazette on March 19th. Arkansas officials should focus on “broad, comprehensive reforms to increase economic growth” rather than targeted economic development incentives. One example of an […]
Are Arkansas’s “Quick Action” Business Subsidies Actually Creating Jobs?
By Caleb Taylor ACRE Policy Analyst Jacob Bundrick and ACRE Scholar Dr. Tom Snyder discussed the unintended consequences and opportunity costs of Quick Action Closing Fund (QACF) spending at the State Agencies & Governmental Affairs – Senate Constitutional Issues Subcommittee on February 5th. Bundrick and Snyder explained the conclusions of their working paper titled “Do […]
Bundrick, Snyder To Testify To Subcommittee On Targeted Business Subsidies
By Caleb Taylor Jacob Bundrick and Dr. Tom Snyder will speak before the State Agencies & Governmental Affairs – Senate Constitutional Issues Subcommittee at 1 p.m. Monday in the Old Supreme Courtroom at the State Capitol regarding their research examining the effects of targeted business subsidies on economic growth. Bundrick and Snyder’s working paper titled […]
Dr. Horpedahl Talks Future of Economic Growth In Arkansas
By Caleb Taylor ACRE Scholar and UCA Assistant Professor of Economics Dr. Jeremy Horpedahl participated in a panel discussion entitled “The Arkansas Business Status and Future under the Trump Era” at the annual meeting of the Arkansas College Teachers Of Economics and Business (ACTEB) on September 29th, 2017. Other panelists included Arkansas Economic Development Commission’s […]
Are Targeted Business Subsidies Good For Economic Growth?
Can Arkansas’s public officials stimulate the economy with targeted business subsidies? ACRE policy analyst Jacob Bundrick and scholar Dr. Thomas Snyder investigate this question in a working paper titled “Do Business Subsidies Lead to Increased Economic Activity? Evidence from Arkansas’s Quick Action Closing Fund.” The study, released by the Mercatus Center at George Mason University […]
Issue 3 and Local Economic Development
By Mr. Jacob Bundrick Will Issue 3 bring jobs or bankruptcy taxes? Issue 3 proposes to allow local governments to appropriate tax dollars directly to private companies for economic development projects and to pay private organizations for economic development consulting work. Issue 3 would also expand the type of projects for which local debt can […]
How Governments Use Financial Incentives to Try to Steer the Economy
By Mr. Jacob Bundrick Earlier this month, software engineering firm Elyxor pledged to create 45 new tech jobs in North Little Rock over the next five years. Arkansas Online quoted Governor Asa Hutchinson as saying, “While we have a diversified economy in Arkansas … we will not be complete as a state and complete as […]
Why Financial Incentives Do Not Increase Economic Activity
By Mr. Jacob Bundrick In my last post, I went over the basics of why tax incentives and subsidies are considered staples of economic development. In this post, I’ll explain why they don’t work as politicians might hope. A common argument in favor of financial incentives is that tax breaks and subsidies motivate firms to […]