Business Climate, Taxes and Expenditures, and State Industrial Growth in the United States

The Economic Gains to Colorado of Amendment 66

“…Further, and Plaut and Pluta (1983). These studies find that businesses consistently rank educational expenditures as a desirable governmental expenditure, and that while taxes are a component affecting firm location, they are not first, second or third on the list, and that low tax burdens typically imply low levels of public services.…”

Welfare programs and the state economy

“…As welfare expenditures increase, the capital available for private investment declines, forcing the choice between investing in either welfare programs or the private sector. Thus, trade-offs in welfare programs are expected to occur between maximizing an individual's utility and putting the money into another area that can be more productive (Gueron & Pauly, 1991;Plaut & Pluta, 1983). Lichter and Jayakody (2002) found that while welfare expenditures helped to reduce poverty, it provides no positive return on investment to the economy because expenditures and programs have not been able to successfully transition recipients to a state of financial independence.…”

Empirical investigation of the effect of amenities and other factors on business location decisions

“…Many studies, for example, note that part of the reason for the growth of the Sunbelt was that businesses were seeking better environmental conditions than those found in the Northeast. Many regional studies, because of the lack of plant-level data, use regional industrial growth variables (such as changes in employment growth across industrial sectors) as proxies for trends in the location of individual manufacturing and business service establishments (Wheat 1973(Wheat , 1986Keeble 1980;Plaut and Pluta 1983). At the metropolitan level, access to recreational amenities has been considered a factor in the growth of office space and employment (Ildanfeldt and Raper 1990).…”