Thursday, September 8, 2011

Aerotropolis analyzed

Saku Aura has a new study on the economic effects of the proposed Aerotropolis tax credits. It's really the only careful analysis out there, despite the hundreds of millions of dollars involved.  In Aura's words:
The lack of careful studies addressing the economic impact of the proposed legislation exposes one very surprising aspect of the Aerotropolis discussion. While a few very rudimentary calculations on job creation and economic output have been presented, no serious cost-benefit analyses have been reported.
Aura also makes the point that the proponents of Aerotropolis have not couched their arguments in any of the usual market failure terms used to justify nearly any policy intervention.  I guess they really just want the money for themselves, regardless of whether it benefits the region or state as a whole.