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100			_aMeurers, Martin _954222
245			_aMarket Potential and Fiscal Incentives Influence Firms’ Location Decisions: _bEvidence From U.S. Counties/ _cMartin Meurers
260			_bSage, _c2020.
300			_aVol.34, issue 2, 2020: (126–139p.)
520			_aHow important are market potential and fiscal incentives for firms’ location decisions? We estimate the influence of subsidies and tax breaks on the decisions of firms to relocate or to remain in a certain U.S. county using a structural economic geography model developed in Meurers and Moenius (2018). In a panel data set from 1990 to 2016 for almost 3,000 U.S. counties, the authors find a strong and robust impact of economic geography on firms’ location decisions: The closer a county is to market demand and to the supply of inputs, the more firms locate there. As the model predicts, public investment attracts firms while the local tax burden disincentivizes economic activity, although to a lesser extent. Furthermore, in counties that are closer to economic centers, firms respond less to public investment and tax changes than firms in counties far away from centers. These data, therefore, confirm the predictions of the model regarding the potential effectiveness of regional development policies, in particular for investment tax credits, job creation, and training.
650			_aFiscal Incentives Influence _954223
650			_aFirms’ Location Decisions _954224
650			_aU.S. Counties _954225
650			_aMarket Potential _954226
700			_aMoenius, Johannes _eCo-author _954227
773	0		_010589 _916747 _dSage Publisher _tEconomic development quarterly
856			_uhttps://doi.org/10.1177/0891242420919805
942			_2ddc _cART
999			_c13433 _d13433