[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwppe/0511016.html
   My bibliography  Save this paper

The Impact of Wal-Mart on Local Fiscal Health: Evidence from a Panel of Ohio Counties

Author

Listed:
  • Michael J. Hicks

    (Air Force Institute of Technology)

Abstract
This research analyzes selected fiscal impacts of Wal-Mart in Ohio from 1985 through 2003. Using a panel of counties, and accounting for spatial autocorrelation in an instrumental variable model I estimate impact of Wal-Mart and Super-Centers on selected revenues and transfer payments. On revenues I find that the presence of a Wal-Mart increases local commercial property tax assessments, resulting in collection increases of between $350,000 to roughly $1.3 million. Wal-Mart also is associated with higher levels of local labor force participation. On expenditures I also find that the presence of a Wal-Mart dramatically increases the per capita EITC claims in a county (between 18 and 43 percent), while the dollar value of these claims experiences mixed impacts between Wal-Mart and a Supercenter. Similarly, the impact of Wal-Mart on Foodstamps expenditures is mixed, but small in any case. There are no in-county impacts of Wal-Mart on expenditures on Temporary Assistance to Needy Families and its predecessor Aid to Families with Dependent Children. However, Medicaid expenditures experience growth which may amount to roughly 16 additional cases per county attributable to a single Wal- Mart. The per worker costs of Medicaid estimated in this study is consistent with reported levels in a number of states, and study estimates by Dube and Jacobs [2004], Carlson [2005] and Hicks [2005a]. The magnitude and statistical certainty of these findings, accompanied by a review of previous research suggests that local fiscal intervention, either through incentives or the much touted “Wal-Mart Tax” is unwarranted.

Suggested Citation

  • Michael J. Hicks, 2005. "The Impact of Wal-Mart on Local Fiscal Health: Evidence from a Panel of Ohio Counties," Public Economics 0511016, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwppe:0511016
    Note: Type of Document - pdf
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/pe/papers/0511/0511016.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Emek Basker, 2005. "Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 174-183, February.
    2. Terry F. Buss, 2001. "The Effect of State Tax Incentives on Economic Growth and Firm Location Decisions: An Overview of the Literature," Economic Development Quarterly, , vol. 15(1), pages 90-105, February.
    3. Stone, Kenneth E., 1995. "Competing With the Retail Giants," Staff General Research Papers Archive 5307, Iowa State University, Department of Economics.
    4. Barnes, Nora Ganim & Connell, Allison & Hermenegildo, Lisa & Mattson, Lucinda, 1996. "Regional differences in the economic impact of Wal-Mart," Business Horizons, Elsevier, vol. 39(4), pages 21-25.
    5. Michael J. Hicks & Kristy Wilburn, 2005. "The Locational Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," Urban/Regional 0511011, University Library of Munich, Germany.
    6. Robert I. Lerman & Kelly S. Mikelson, 2004. "Examining the Relationship between the EITC and Food Stamp Program Participation Among Households with Children," Econometric Society 2004 North American Summer Meetings 190, Econometric Society.
    7. Hicks, Michael J. & Wilburn, Kristy L., 2001. "The Regional Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 305-313, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Basker, Emek, 2011. "The Causes and Consequences of Wal-Mart’s Growth," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 110-134.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael J. Hicks, 2005. "Does Wal-Mart Cause an Increase in Anti-Poverty Program Expenditures?," Public Economics 0511015, University Library of Munich, Germany.
    2. Michael Hicks, 2007. "Wal-Mart’s Impact on Local Revenue and Expenditure Instruments in Ohio, 1988–2003," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(1), pages 77-95, March.
    3. Hicks, Michael J., 2007. "A Quasi-Experimental Test of Large Retail Store Impacts on Regional Labor Markets: The Case of Cabela's Retail Outlets," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-7.
    4. Michael J. Hicks, 2006. "Transportation and infrastructure, retail clustering, and local public finance: evidence from Wal-Mart's expansion," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 100-114.
    5. Neumark, David & Zhang, Junfu & Ciccarella, Stephen, 2008. "The effects of Wal-Mart on local labor markets," Journal of Urban Economics, Elsevier, vol. 63(2), pages 405-430, March.
    6. Michael J. Hicks & Stanley R. Keil & Lee C. Spector, 2012. "Mom-and-Pops or Big Box Stores," Economic Development Quarterly, , vol. 26(4), pages 311-320, November.
    7. Michael Hicks, 2015. "Does Wal-Mart Cause an Increase in Anti-Poverty Expenditures?," Social Science Quarterly, Southwestern Social Science Association, vol. 96(4), pages 1136-1152, December.
    8. repec:rre:publsh:v:39:y:2009:i:1:p:73-83 is not listed on IDEAS
    9. Rudholm, Niklas & Li, Yuijao & Kenneth, Carling, 2018. "How Does Big-Box Entry Affect Labor Productivity in Durable Goods Retailing? A Synthetic Control Approach," HUI Working Papers 130, HUI Research.
    10. Freedman, Emily A. & McConnon Jr., James C. & Hunt, Gary L. & Gabe, Todd M., 2016. "An Analysis of the Economic Impacts of Big-Box Stores on a Community’s Retail Sector: Evidence from Maine," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(2), December.
    11. Goetz, Stephan J. & Swaminathan, Hema, 2004. "Wal-Mart and Rural Poverty," 2004 Annual meeting, August 1-4, Denver, CO 20149, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Michael J. Hicks, 2007. "Job Turnover and Wages in the Retail Sector: The Influence of Wal-Mart," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 22(Spring 20), pages 137-160.
    13. Dube, Arindrajit & Lester, T. William & Eidlin, Barry, 2007. "Firm Entry and Wages: Impact of Wal-Mart Growth on Earnings Throughout the Retail Sector," Institute for Research on Labor and Employment, Working Paper Series qt22s5k4pv, Institute of Industrial Relations, UC Berkeley.
    14. Vandegrift, Donald & Loyer, John & Kababik, David, 2011. "The effect of Walmart on the tax base: evidence from New Jersey," MPRA Paper 30937, University Library of Munich, Germany.
    15. Michael J. Hicks, 2005. "What Do Quarterly Workforce Dynamics Tell Us About Wal-Mart? Evidence from New Stores in Pennsylvania," Urban/Regional 0511010, University Library of Munich, Germany.
    16. Peralta, Denis & Kim, Man-Keun, 2016. "Big-Box Retailers and Personal Income Growth in the U.S," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235216, Agricultural and Applied Economics Association.
    17. Martens, Bobby J. & Florax, Raymond J.G.M. & Dooley, Frank J., 2005. "The Effect of Entry by Supercenter and Warehouse Club Retailers on Grocery Sales and Small Supermarkets: A Spatial Analysis," 2005 Annual meeting, July 24-27, Providence, RI 19176, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Sven-Olov Daunfeldt & Oana Mihaescu & Helena Nilsson & Niklas Rudholm, 2017. "What happens when IKEA comes to town?," Regional Studies, Taylor & Francis Journals, vol. 51(2), pages 313-323, February.
    19. Niklas Rudholm & Yujiao Li & Kenneth Carling, 2022. "How does big-box retail entry affect labor productivity in durable goods retailing? A synthetic control approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(1), pages 89-117, August.
    20. Stapp, Jacob, 2014. "The Walmart Effect: Labor Market Implications in Rural and Urban Counties," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 2014, pages 1-17.
    21. repec:rre:publsh:v:38:y:2008:i:1:p:8-28 is not listed on IDEAS
    22. Stone, Kenneth E. & Artz, Georgeanne M., 2012. "Revisiting Wal-Mart's Impact on Iowa Small Town Retail: Twenty-Five Years Later," Staff General Research Papers Archive 35203, Iowa State University, Department of Economics.

    More about this item

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H - Public Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwppe:0511016. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.