Publication Date
11-1995
Series Number
95-WP 142
Abstract
With increasing frequency, state governments offer incentive packages to keep companies from leaving. But these tax incentive packages can cost more than foregone revenues from the single threatening firm. Other firms are encouraged to demand similar tax breaks. The authors explicitly consider the role of these copy cats in determining a government's optimal response to firm relocation threats. The information may help governments distinguish for which cases offering incentives is a worthwhile investment.
Publication Information
This working paper was published as Wohlgemuth, Darin and Maureen Kilkenny, "Firm Relocation Costs and Copy Cat Costs," International Regional Science Review 21 (1998): 139–162, doi:10.1177/016001769802100203.
Recommended Citation
Wohlgemuth, Darin and Kilkenny, Maureen, "Firm Relocation Threats and Copy Cat Costs" (1995). CARD Working Papers. 197.
https://lib.dr.iastate.edu/card_workingpapers/197