Does START-UP NY Promote Firm Formation?
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Published:
Aug 2, 2021
Keywords:
agent-based modeling START-UP NY tax exemption Tompkins County
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Abstract
This paper explores the impact of START-UP NY policy throughout simulations by using the agent-based model. In 2013, Governor Cuomo introduced the policy START-UP NY (New York), designed to create more jobs by helping people start or move their qualified businesses into tax-free zones. Measuring the impact of START-UP NY, however, is difficult because the data are not yet available for causal inference purposes. The agent-based model developed for this paper is designed to simulate the impact of START-UP NY on the local economy of Tompkins County by conducting the Cobb-Douglas function into the model using the data from the IMPLAN model. The simulation results show that ensuring a stable demand for firms’ output is more critical for firms to survive than the kind of tax exemptions offered by START-UP NY.
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Kim, W. (2021). Does START-UP NY Promote Firm Formation? . Nakhara : Journal of Environmental Design and Planning, 20(1), Article 105. https://doi.org/10.54028/NJ202120105
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Research Articles
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
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32. Shin, K., Park, G., Choi, J. Y., & Choy, M. (2017). Factors affecting the survival of SMEs: A study of biotechnology firms in South Korea. Sustainability, 9(1), 108.
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35. Wang, S.W. (2006). Determinants of new firm formation in Taiwan. Small Business Economics, 27(4-5), 313-321
2. Axelrod, R. M. (1984). The evolution of cooperation. Basic Books.
3. Bartik, T. J. (1991). The effects of property taxes and other local public policies on the intrametropolitan. In H. W. Herzog & A. M. Schlottmann (Eds.), Industry Location and Public Policy (pp. 57-80). The University of Tennessee Press. https://research.upjohn.org/bookchapters/125/
4. Bartik, T. J. (2003). Local economic development policies, Upjohn Institute Working Paper, No. 03-91, W.E. Upjohn Institute for Employment Research, Kalamazoo, MI, http://dx.doi.org/10.17848/wp03-91
5. Berry, B. J. (1989). Venturing to develop: Forces that promote economic transformation at the leading edge and on the far periphery. Institute of Government and Public Affairs, University of Illinois.
6. Birch, D. L. (1979). The job generation process. Cambridge.
7. Blanchflower, D. G., & Oswald, A. J. (1998). What makes an entrepreneur? Journal of Labor Economics, 16(1), 26-60.
8. Blank, S. (2013). The four steps to the epiphany: Successful strategies for products that win. BookBaby.
9. Bondonio, D., & Engberg, J. (2000). Enterprise zones and local employment: evidence from the states’ programs. Regional Science and Urban Economics, 30(5), 519-549.
10. Bondonio, D., & Greenbaum, R. T. (2007). Do local tax incentives affect economic growth? What mean impacts miss in the analysis of enterprise zone policies. Regional Science and Urban Economics, 37(1), 121-136.
11. Boselie, P., Paauwe, J., & Jansen, P. (2001). Human resource management and performance: Lessons from the Netherlands. International Journal of Human Resource Management, 12(7), 1107-1125.
12. Bosma, N., Praag, M., Thurik, R., & Wit, G. (2004). The value of human and social capital investments for the business performance of start-ups. Small Business Economics, 23, 227-236.
13. Braunerhjelm, P., & Eklund, J. E. (2014). Taxes, tax administrative burdens and new firm formation. Kyklos, 67(1), 1-11.
14. Eberts, R. W. (2005). Overview of state and local economic development policies and practice in the United States. In S. G. Y. H. J. I. f. L. P. a. Training (Ed.), Local Governance for Promoting Employment: Comparing the Performance of Japan and Seven Countries (pp. 87-102). W.E. Upjohn Institute for Employment Research.
15. Elvery, J. A. (2009). The impact of enterprise zones on resident employment: An evaluation of the enterprise zone programs of California and Florida. Economic Development Quarterly, 23(1), 44-59.
16. Empire State Development. (n.d.). START-UP NY Program. Empire State Development. https://esd.ny.gov/startup-NY-program
17. Merriam-Webster. (n.d.). Emergence. In Merriam-Webster.com dictionary. Retrieved Nov 21, 2016, from https://www.merriam-webster.com/dictionary/emergence
18. Merriam-Webster. (n.d.). Reindustrialization. In Merriam-Webster.com dictionary. Retrieved June 16, 2016, from https://www.merriam-webster.com/dictionary/reindustrialization
19. Friedman, T. L. (2005). The world is flat: A brief history of the twenty-first century. Farrar, Straus, and Giroux.
20. Giardino, C., Wang, X., & Abrahamsson, P. (2014). Why early-stage software startups fail: A behavioral framework. Software Business Towards Continuous Value Delivery, 5th International Conference, ICSOB 2014, Paphos, Cyprus.
21. Ham, J. C., Swenson, C., İmrohoroğlu, A., & Song, H. (2011). Government programs can improve local labor markets: Evidence from state enterprise zones, federal empowerment zones and federal enterprise community. Journal of Public Economics, 95(7), 779-797.
22. Haufler, A., Norbäck, P.-J., & Persson, L. (2014). Entrepreneurial innovations and taxation. Journal of Public Economics, 113, 13-31.
23. Isard, W., Azis, I. J., Drennan, M. P., Miller, R. E., Saltzman, S., & Thorbecke, E. (2017). Methods of interregional and regional analysis. Routledge.
24. Kemp, R. (1987). Raising revenues without increasing taxes through cooperation between local bodies and private sector: A note. Pakistan Economic and Social Review, 25(2), 109-114
25. Lee, S.-C., Lim, W.-H., & Suh, E.-K. (2014). Youth startup firms: A case study on the survival strategy for creating business performance. Journal of Distribution Science, 12(6), 81-88.
26. Leigh, N. G., & Blakely, E. J. (2013). Planning local economic development: Theory and practice. SAGE Publication.
27. Lim, S., Ribeiro, D., & Lee, S. M. (2008). Factors affecting the performance of entrepreneurial service firms. The Service Industries Journal, 28(7), 1003-1013.
28. Neumark, D., & Kolko, J. (2010). Do enterprise zones create jobs? Evidence from California’s enterprise zone program. Journal of Urban Economics, 68(1), 1-19.
29. Phillips, J. M., & Goss, E. (1995). The effect of state and local taxes on economic development: A meta-analysis. Southern Economic Journal, 62(2), 320-333.
30. Railsback, S., & Grimm, V. (2011). Agent-based and individual-based modeling: A practical introduction. Princeton University Press.
31. Schelling, T. C. (1971). Dynamic models of segregation. Journal of Mathematical Sociology, 1(2), 143-186.
32. Shin, K., Park, G., Choi, J. Y., & Choy, M. (2017). Factors affecting the survival of SMEs: A study of biotechnology firms in South Korea. Sustainability, 9(1), 108.
33. Smith, A. (1937). The wealth of nations. Random House.
34. Stangler, D., & Kedrosky, P. (2010). Exploring firm formation: Why is the number of new firms constant? SSRN. http://dx.doi.org/10.2139/ssrn.1585380
35. Wang, S.W. (2006). Determinants of new firm formation in Taiwan. Small Business Economics, 27(4-5), 313-321