Tax abatements and rent-seeking：（税收减免和寻租）.pdfVIP

Urban Studies, Vol. 30, No. 3, 1993 593-598 Tax Abatements and Rent-seeking Richard B. Coffman [Paper received in final form, February 1992) Summary. Recent literature has argued that a policy of invariant tax abatement awards is more costly than necessary, and has suggested several ways of improving tax abatement policy by allowing . This paper argues such discretion carries its own dangers, officials discretion in granting abatements and may well create rent-seeking costs larger than the other costs it is meant to avert. Analysis suggests tax abatements should be abandoned as a development policy . More generally, rent-seeking should be recognised as an important concept in the analysis and evaluation of development programmes. will go to firms which on net impose large In a recent article in this journal, Michael infra-structure or other external costs on J. Wolkoff (1985) argued that a policy of invariant tax abatement awards is more the jurisdiction. In response to this problem, Wolkoff costly than necessary, and suggested sev- proposes that abatement policy be modi- eral ways of improving tax abatement fied to try to improve the targeting of policy by allowing officials discretion in . The purpose of this current policies without greatly increasing granting abatements article is to argue that such discretion decision costs (Wolkoff, 1985, p. 313). The intent of these suggested modifications carries its own dangers, and may well create rent-seeking costs larger than the is to allow