Job creation tax credits, fiscal foresight and job growth Robert S. Chirinko and Daniel J. Wilson
By: Chirinko, Robert S
.
Contributor(s): Wilson, Daniel J.
Material type: 
ArticleSubject(s): CREACIÓN DE EMPLEO | INCENTIVOS FISCALES | GASTOS FISCALES | EMPLEO | POLITICA FISCAL | ESTADOS UNIDOS
In:
National Tax Journal v. 76, n. 3, September 2023, p. 481–523Summary: We study fiscal foresight using state panel variation in job creation tax credits (JCTCs) and their implementation lags. Using inverse probability weighting to address potential endogeneity, we estimate the dynamic effects of JCTCs during implementation lags, when they go into effect, and afterward. Failing to account for the distorting effects of fiscal foresight results in upwardly biased estimates of their initial impact by about one-third. The true initial impact is small. However, the longer-run cumulative effect is economically significant and implies a fairly low cost per job of approximately $15,000 and a local fiscal multiplier of 1.11–4.22.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 233/2023/3-1 (Browse shelf) | Available | OP 233/2023/3-1 |
Browsing IEF Shelves Close shelf browser
| No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | ||
| OP 233/2023/2-5 Delivering aid to businesses through the payroll tax system | OP 233/2023/2-6 Forum | OP 233/2023/3 National Tax Journal | OP 233/2023/3-1 Job creation tax credits, fiscal foresight and job growth | OP 233/2023/3-2 Race, ethnicity and taxation of the family | OP 233/2023/3-3 Temporary property tax relief and residential home sales | OP 233/2023/3-4 The child tax credit over time by family type |
Resumen.
Bibliografía.
We study fiscal foresight using state panel variation in job creation tax credits (JCTCs) and their implementation lags. Using inverse probability weighting to address potential endogeneity, we estimate the dynamic effects of JCTCs during implementation lags, when they go into effect, and afterward. Failing to account for the distorting effects of fiscal foresight results in upwardly biased estimates of their initial impact by about one-third. The true initial impact is small. However, the longer-run cumulative effect is economically significant and implies a fairly low cost per job of approximately $15,000 and a local fiscal multiplier of 1.11–4.22.
There are no comments for this item.