Are All Discount Rates Equal? A Note on Time Preferences Across Public and Private Benefits in Michigan's Upper Peninsula

Loveridge, Scott; Bokemeier, Janet L.; Kakela, Peter; Satriawan, Elan

doi:10.1111/j.1467-9787.2010.00673.x

Cited by 4 publications

(6 citation statements)

References 25 publications

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“…Policy makers in counties with stagnate job growth may feel pressured to act quickly to satisfy the electorate (Loveridge et al. ).…”

Section: Resultsmentioning

confidence: 99%

“…Poverty (Dewees, Lobao, and Swanson 2003;Fleischmann, Green, and Kwong 1992), unemployment (Saiz 2001), and median income affect economic development policy and policy makers may react to local economic conditions when forming these policies. For example, slower growing locations may be more aggressive in economic development policy, all else equal-whereas Loveridge et al (2010) find that this is often due to the public's high rate of time preference for community job creation. The presence or dominance of certain economic sectors impacts economic development activities.…”

Section: Economic Development Incentives 363mentioning

confidence: 95%

“…For example, slower growing locations may be more aggressive in economic development policy, all else equal—whereas Loveridge et al. () find that this is often due to the public's high rate of time preference for community job creation. The presence or dominance of certain economic sectors impacts economic development activities.…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Why Do Localities Provide Economic Development Incentives? Geographic Competition, Political Constituencies, and Government Capacity

et al. 2012

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U.S. states and localities often engage in economic development policies using incentives and abatements for specific firms or industries. Yet, there is very little empirical evidence suggesting that such policies are successful. Why, then, do governments engage in these policies? In order to answer this question, we employ a model that considers not only geographic and economic factors, but also, in a novel application, local political conditions. A unique survey of U.S. county governments forms the basis for our empirical assessment of both traditional economic development policies and new‐wave policies. Using probit, Poisson, negative binomial, and spatial econometric models, we find evidence that the use of incentives is inversely related to local economic conditions. Furthermore, we find Republican counties are more apt to use incentives, though counties dominated by one political party are less likely to use them.

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“…Policy makers in counties with stagnate job growth may feel pressured to act quickly to satisfy the electorate (Loveridge et al. ).…”

Section: Resultsmentioning

confidence: 99%

Section: Economic Development Incentives 363mentioning

confidence: 95%

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Why Do Localities Provide Economic Development Incentives? Geographic Competition, Political Constituencies, and Government Capacity

et al. 2012

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“…Thus, the rate of return in certain financial markets may not accurately approximate the social discount rate of goods such job creation. Furthermore, as Loveridge et al (2010) note, a high discount rate for job creation (26%) also might explain the reluctance of policy makers for longer, asset based approaches to local economic development. The jobs creation discount rate might also be useful in the future in efforts to use public opinion in national unemployment forecasting.…”

Section: Discussionmentioning

confidence: 97%

“…Warner and Pleeter 2001;Plantation 1984;Hausman 1979;Gilman 1976). Loveridge et al (2010) suggest that community level characteristics can explain a portion of the variation in both private and social discount rates. In this light, for forecasting community-or regional-level job outcomes, the local area effects on an individual's preferences could be useful in ways similar to more traditional expectations variables.…”

Section: Discounting Literaturementioning

confidence: 97%

Individual discount rates forecast county-level unemployment change

Loveridge

Komarek

2016

Applied Economics Letters

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We use a national survey to estimate individuals' discount rates for job creation in the community and test whether impatience for jobs is associated county-level unemployment change outcomes in subsequent years. Our results suggest that impatience for jobs is a possible forecast variable for future modelling efforts. To explore whether the impatience effect is general or simply limited to attitudes about local job creation, the same survey asked about discount rates for local amenity development and personal financial windfall. We find that job growth discount rates perform best for forecasting.

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Trust and Patience after a Tornado

Shupp

Loveridge

Skidmore

et al. 2017

Weather, Climate, and Society

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This study examines how individuals’ trust levels and patience are affected by a tornado event. Affected and unaffected people were surveyed after a 2013 tornado in Moore, Oklahoma, that resulted in 24 fatalities. Findings suggest that those who self-identified as affected became more trusting in general as well as more trusting of police and fire authorities. Affected homeowners also exhibited less patience than their unaffected counterparts. The evaluation of differences in trust and patience enables us to learn about how underlying propensities to invest (or reinvest) in critical private and public infrastructure may be influenced by extreme events. Disasters alter trust levels and patience of affected residents, and documenting the direction and magnitude of these changes may help agencies involved in the recovery process.

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Are All Discount Rates Equal? A Note on Time Preferences Across Public and Private Benefits in Michigan's Upper Peninsula

Cited by 4 publications

References 25 publications

Why Do Localities Provide Economic Development Incentives? Geographic Competition, Political Constituencies, and Government Capacity

Why Do Localities Provide Economic Development Incentives? Geographic Competition, Political Constituencies, and Government Capacity

Individual discount rates forecast county-level unemployment change

Trust and Patience after a Tornado

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