Journal article
Taxes and Agglomeration Economies: How Are They Related to Nonprofit Firm Location?
Southern Economic Journal, Vol.75(2), pp.538-557
Southern Economic Journal
2008
Abstract
For-profit studies have investigated the effect of taxes and agglomeration economies on individual firm location, but these factors have been largely overlooked for nonprofit institutions. I use firm-level data to investigate how corporate income, property, sales, and individual taxes and the presence of existing nonprofits are associated with location decisions. I find some evidence that nonprofits are more likely to locate in high tax states. In particular, nonprofits dependent on mission-related revenues are more responsive to corporate property taxes. My results also show that nonprofits are more likely to locate in high individual tax states and donation-based nonprofits are more sensitive to individual tax rates. The results suggest the presence of within industry agglomeration, but the relation is nonlinear. The first-order effect is positive while the second-order effect is negative. I also find some evidence that outside industry concentration and nonprofit location are negatively related.
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Details
- Title
- Taxes and Agglomeration Economies: How Are They Related to Nonprofit Firm Location?
- Creators
- Teresa D Harrison
- Publication Details
- Southern Economic Journal, Vol.75(2), pp.538-557
- Series
- Southern Economic Journal
- Publisher
- Southern Economic Association
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Identifiers
- 991019170146204721