"The Impact of Tax Increment Financing Programs on Local Economic Development".
Author | Metzgar, Judd |
Man, Joyce Y.
Public Budgeting, Accounting and Financial Management, Fall 1999, pp. 417-430.
Designed to stimulate private-sector investment in blighted neighborhoods, tax increment financing (TIF) has become a popular funding mechanism for capital infrastructure programs. Although the use of TIF has grown, little research has been conducted into its effectiveness as an economic development tool. This article examines the impact of municipal TIF programs on local economic development. Using a cross-section time series regression model drawn from a sample of Indiana municipalities, this study examines the relationship between TIFs and increasing levels of business activity. Economic factors such as local market conditions, tax revenues, public spending, the national economy, and local area incentive programs are used as independent variables to provide more efficient...
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