Targeted Incentives

ACRE Working Papers:

Do Business Subsidies Lead to Increased Economic Activity? Evidence from Arkansas’s Quick Action Closing Fund by ACRE Scholar Dr. Thomas Snyder and ACRE Policy Analyst Jacob Bundrick.

The study investigates the relationship between providing cash subsidies to select businesses, on the one hand, and, on the other hand, employment and establishments in Arkansas’s counties. The author’s find no evidence to suggest that Quick Action Closing Fund subsidies lead to increased employment and business establishments in Arkansas’s counties. The working paper was published by the Mercatus Center at George Mason University and has been accepted for publication in The Review of Regional Studies. You can read a one-page infographic of Bundrick’s research here.

Policy Reviews:

Government Accountability: 5 Fixes for Arkansas’s Quick Action Closing Fund by ACRE Policy Analyst Jacob Bundrick

The Quick Action Closing Fund (QACF) is a targeted economic development incentive program the state of Arkansas uses to try to increase economic activity. This program allows the state government to give cash grants to attract or retain businesses. It’s largely up to the Governor of Arkansas to approve these cash grants. Arkansas lawmakers can take steps to improve the transparency and accountability of the program. Government Accountability: 5 Fixes for Arkansas’s Quick Action Closing Fund, a policy review written by ACRE Policy Analyst Jacob Bundrick, looks at five different policy proposals that could accomplish these goals.

Tax Breaks & Subsides: Challenging the Arkansas Status Quo by ACRE Policy Analyst Jacob Bundrick

Have you ever wondered whether tax breaks and subsidies have side effects? Are you curious about alternative ways to grow Arkansas’s economy? This policy review give an in-depth look at these programs, their economic impact, and some common misconceptions people have about them.

Policy Briefs:

Economic Development or Risky Business: A Citizen’s Guide to Issue 3, 2016 by ACRE Scholar Dr. Jeremy Horpedahl and ACRE Policy Analyst Jacob Bundrick

This brief guide gives readers the pros and cons of the controversial ballot measure Issue 3: An Amendment to the Arkansas Constitution Concerning Job Creation, Job Expansion and Economic Development. This ballot issue would remove the current cap on Amendment 82 bonds the state may issue for economic development projects and allow local governments to appropriate money for economic development. Proponents of Issue 3 argue that by removing the limit on the amount of debt the state can issue for economic development, Arkansas may be able to attract economic-development projects it would not otherwise be able to secure. However, issuing debt and using tax dollars for economic development comes at a cost. Arkansas and its cities would take on significant risk by issuing public debt to attract select companies under the change from Issue 3.

Radio:

Op-eds/Commentary:

Blog Posts:

Are Targeted Business Subsidies Good For Economic Growth? posted on The ACRE Review December 8, 2017.

Why Financial Incentives for Businesses Put Taxpayers at Risk by ACRE Policy Analyst Jacob Bundrick, posted on The ACRE Review September 13, 2016.

How Governments Use Financial Incentives to Try to Steer the Economy by ACRE Policy Analyst Jacob Bundrick, posted on The ACRE Review September 6, 2016.

How Tax Breaks and Subsidies Cost You and the Government Money by ACRE Policy Analyst Jacob Bundrick, posted on The ACRE Review August 30, 2016.

Why Financial Incentives Do Not Increase Economic Activity by ACRE Policy Analyst Jacob Bundrick, posted on The ACRE Review August 23, 2016.

Tax Incentives and Subsides: Two Staples of Economic Development by ACRE Policy Analyst Jacob Bundrick, posted on The ACRE Review August 19, 2016.

State Incentives in Arkansas: A Friendly Debate in the Arkansas Democrat-Gazette posted on The ACRE Review April 29, 2016.