The impact of tax increment financing on property value

2019 ◽  
Vol 13 (5) ◽  
pp. 689-711
Author(s):  
Chaoran He ◽  
SeyedSoroosh Azizi
Keyword(s):  
Local Economic Development ◽  
Evaluation Process ◽  
Subjective Assessment ◽  
Property Value ◽  
Tax Increment Financing ◽  
Content Type ◽  
Population Ratio ◽  
Stage Estimation ◽  
Socioeconomic And Demographic Factors ◽  
The Impact

Purpose Tax increment financing (TIF) has been adopted widely by municipalities to promote local economic development. This study aims to examine the effect of TIF adoption on property values at the parcel level in Indiana from 2009 to 2016. Design/methodology/approach Concerns of TIF adoption endogeneity are addressed by a two-stage estimation process using urban population ratio and unemployment rates as instruments. Findings In addition to finding influential socioeconomic and demographic factors, the results suggest that parcels located within TIF districts were sold more than parcels outside of TIF districts by approximately $5,000. Such premium is mainly picked up by the positive effect on commercial and agricultural parcels, which outweighs the negative TIF impact on residential types. Originality/value Arm’s length transaction data on property value are used to eliminate the subjective assessment bias, potential calculation errors during the evaluation process and econometric issues caused by using the assessed value.

Sustaining corporate culture in a world of hybrid work

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Buell Hirsch
Keyword(s):  
Corporate Culture ◽  
Current Literature ◽  
Design Methodology ◽  
White Collar ◽  
Subjective Assessment ◽  
Social Implications ◽  
Content Type ◽  
The Subject ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to examine the challenges to sustaining corporate culture in a world of hybrid working. Design/methodology/approach This paper is a review of current literature on the impact of remote and hybrid working on white-collar employees. Findings There is little consensus on whether remote/hybrid working will harm or strengthen corporate culture. Research limitations/implications The viewpoint is a subjective assessment of a limited number of articles on the subject Practical implications It is not entirely clear how those responsible for corporate culture can act on the findings. Social implications In a world in which corporations are experiencing a shortage of talent, how they handle corporate culture will be increasingly important. Originality/value While much has been written on the impact of remote working, this viewpoint takes the original view that strong corporate cultures rely more on the attitudes and actions of individual employees that company programs or initiatives.

The impact of setting on wine tasting experiments

2019 ◽  
Vol 31 (4) ◽  
pp. 578-590
Author(s):  
Geoffrey Lewis ◽  
Steve Charters ◽  
Benoît Lecat ◽  
Tatiana Zalan ◽  
Marianna McGarry Wolf
Keyword(s):  
Willingness To Pay ◽  
Design Methodology ◽  
Subjective Assessment ◽  
Social Setting ◽  
Content Type ◽  
Wine Consumption ◽  
The Past ◽  
The Social ◽  
The Impact ◽  
The Relationship

Purpose Tasting experiments involving willingness to pay (WTP) have grown over the past few years; however, most of them occur in formal wine-tasting conditions, removed from real-world experience. This study aims to conduct experiments on wine appreciation and willingness to pay in both settings, to allow a comparison of how tasters reached conclusions in different situations. Design/methodology/approach The authors conducted two sets of experiments in Dijon, France, with knowledgeable wine drinkers, in 2014 and in 2016, to explore the relationship between wine ratings, WTP and objective characteristics (appellation, labelling and price). The first was in a formal wine-tasting setting (n = 58), and the second in the social setting of a restaurant (n = 52). The experiments involved deception: the tasters were presented with five wines, but in fact only three wines were involved, two of the wines being presented twice. Findings The results from the 2014 study showed that even with a group of experienced tasters, objective characteristics overwhelmed subjective assessment (taste, sensory perception) of the wine. Ratings and WTP were driven by the appellation or brand, labelling and price of the wines. The authors replicated the experiment in a social setting in 2016 which, contrary to their expectations, produced very similar results. In neither experiment did the experienced tasters detect the deception. Research limitations/implications The social setting was a lunch in a restaurant with a group of students who were graduating together. The tasting was conducted by some of their professors, which may have influenced the results and raises questions about whether the setting was truly ‘social’. The sample size for the experiments was comparatively small and further research, including novice and expert tasters, might contradict these findings, or at least add nuances to them. Originality/value The study finds that, contrary to expectations, in the social wine consumption setting of a restaurant meal enjoyed with colleagues, objective wine characteristics over-rode subjective appreciation of the wine.

Accounting for State Authorization in Local Economic Development Policy Usage

2017 ◽  
Vol 50 (1) ◽  
pp. 24-36 ◽  
Author(s):  
Eric J. Stokan
Keyword(s):  
Economic Development ◽  
Local Economic Development ◽  
State Level ◽  
Tax Increment Financing ◽  
Economic Development Policy ◽  
Management Association ◽  
Tax Abatements ◽  
State Authorization ◽  
The Impact ◽  
Biased Estimates

This article empirically tests the impact of failing to account for state-level authorization when explaining the factors that lead municipalities to use tax abatements, tax increment financing, and enterprise zones. Although existing research implicitly assumes that state-level authorization exists, this article demonstrates that this unfounded assumption leads to biased estimates using the 1999, 2004, and 2009 International City/County Management Association (ICMA) Economic Development Survey data on a nationwide set of municipalities. This article refines what is known about the factors, leading to the usage of these three policies before offering implications for practitioners and researchers of local economic development.

An esham-ijara structure in the United States?

2017 ◽  
Vol 8 (4) ◽  
pp. 455-467 ◽  
Author(s):  
Daniel Hummel ◽  
Blake Goud
Keyword(s):  
Local Governments ◽  
Risk Sharing ◽  
Local Economic Development ◽  
Local Level ◽  
The United States ◽  
Conventional Approach ◽  
Islamic Finance ◽  
Tax Increment Financing ◽  
Content Type ◽  
The City

Purpose The purpose of this paper is to explore Islamic borrowing at the local level in redevelopment authorities in the USA through an ijara and esham framework. Design/methodology/approach A hypothetical example is approached with a real redevelopment authority in the City of Pompano Beach, Florida. Actual data from past borrowing in a tax increment financing district are compared to an Islamic financing approach to test for competitiveness to a conventional approach. Findings It was found that when incorporating a crowdsourced option along with an ijara and esham approach, the returns on investment are higher than for a conventional approach. The risk is higher, but the returns are also higher which possibly increases the incentive to invest in these options. Research limitations This scenario is only hypothetical and based on many assumptions. A real-world application of the approach would have to be attempted to confidently determine its viability. Practical implications The potential competitiveness of this financing approach as well as its higher sustainability makes this a favorable approach for local redevelopment authorities to implement for needed money for infrastructure projects in blighted areas of the city. It is also of interest to Muslim countries that are devolving authority to their local governments. Originality/value This paper considers an alternative approach to tax increment financing which relies on a revenue sharing arrangement called an esham–ijara and esham–sukuk risk-sharing structure in Islamic financing terminology. There is currently very little discussion of esham in Islamic finance and no discussion of the application of Islamic finance to local economic development enterprises.

Goodwill hunting

2019 ◽  
Vol 37 (5) ◽  
pp. 597-609 ◽  
Author(s):  
Lucy Cradduck ◽  
Clive M.J. Warren
Keyword(s):  
Negative Impact ◽  
Academic Discourse ◽  
Property Value ◽  
Real Property ◽  
Content Type ◽  
Mixed Methods Approach ◽  
Retirement Village ◽  
Valuation Process ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to add to the academic discourse by developing a methodology by which a block of land’s goodwill, or lack of goodwill, can be factored into its valuation. Design/methodology/approach The research was undertaken utilising a mixed-methods approach, which involved doctrinal research, together with qualitative and quantitative analysis of the impact of neighbourhood disputes on real property value. The disputes engaged with for exemplar purposes were those of tree disputes resolved by QCAT order. Findings A dispute can adversely affect a property’s goodwill, which can impact both its saleability and value. Research limitations/implications Due to the sensitive nature of the valuation process and the potential negative impact that any identification of a property may have on its value, it was not appropriate to identify any properties specifically or the area in which these are located. Further, as regards the available details of disputes, the authors were only able to engage with disputes for which an order existed. Practical implications The methodology developed can be applied to other real property interests, for example, lots in freehold retirement village complexes or those within other strata title schemes of either residential or commercial use. Social implications As the number of neighbourhood disputes throughout Australia grows, addressing the impact that a dispute has for property value is a concern relevant to all valuers and owners. Originality/value The authors add to the academic discourse by developing a methodology by which a property’s goodwill, or lack of goodwill, can be factored into its valuation.

scholarly journals E-university delivery model: handling the evaluation process

2019 ◽  
Vol 25 (7) ◽  
pp. 1633-1646 ◽  
Author(s):  
Rasha Ismail ◽  
Fadi Safieddine ◽  
Ashraf Jaradat
Keyword(s):  
Business Models ◽  
Evaluation Process ◽  
Evaluation Tools ◽  
Content Type ◽  
Online Evaluation ◽  
Brick And Mortar ◽  
Online Distance Learning ◽  
Online Distance ◽  
The Impact

Purpose The setting up of e-university has been slow-going. Much of e-university slow progress has been attributed to poor business models, branding, disruptive technologies, lack of organisational structure that accommodates such challenges, and failure to integrate a blended approach. One of the stumbling blocks, among many, is the handling of evaluation process. E-university models do not provide much automation compared to the original brick-and-mortar classroom model of delivery. The underlining technologies may not have been supportive; however, the conditions are changing, and more evaluation tools are becoming available for academics. The paper aims to discuss these issues. Design/methodology/approach This paper identifies the extent of current online evaluation processes. In this process, the team reviews the case study of a UK E-University using Adobe Connect learning model that mirrors much of the physical processes as well as online exams and evaluation tools. Using the Riva model, the paper compares the physical with the online evaluation processes for e-universities to identify differences in these processes to evaluate the benefits of e-learning. As a result, the models can help us to identify the processes where improvements can take place for automating the process and evaluate the impact of this change. Findings The paper concludes that this process can be significantly shortened and provide a fairer outcome but there remain some challenges for e-university processes to overcome. Originality/value This paper examines the vital quality assurance processes in academia as more universities move towards process automation, blended or e-university business models. Using the case study of Arden University online distance learning, the paper demonstrates, through modelling and analysis that the process of online automation of the evaluation process is achieved with significant efficiency.

The possibilities of community redevelopment with Islamic finance

2019 ◽  
Vol 10 (2) ◽  
pp. 259-273
Author(s):  
Daniel Hummel ◽  
Ayesha Tahir Hashmi
Keyword(s):  
Economic Development ◽  
Local Economic Development ◽  
The State ◽  
Islamic Finance ◽  
Future Research ◽  
Tax Increment Financing ◽  
Content Type ◽  
The Usa ◽  
Political Economic ◽  
Practical Implications

Purpose The purpose of this paper is to explore the application of a profit and loss sharing approach to tax increment financing (TIF) districts in the USA. Design/methodology/approach A survey based on this approach was distributed to representatives of community redevelopment authorities (CRAs) in the State of Florida to ascertain practitioner feedback. Findings Although a majority of the respondents did not feel it was possible for political, economic and legal reasons, some did feel that it was a practical, reasonable and sustainable approach to financing projects for economic development. Some responses were correlated, with others indicating that certain beliefs framed their answers to the questions. Research limitations/implications The surveys were only distributed to CRAs in the State of Florida. Future research will need to include other CRAs in other states to make the findings more generalizable. In addition, the results are merely descriptive and are not an assessment of a successful application. Practical implications The need for more development in blighted areas of many cities across the USA will put emphasis on innovative approaches in financing this. The growth of Islamic finance in the USA and the regulatory framework for it might open a doorway for its application in this area. Originality/value This is the first attempt to apply an Islamic financing methodology to local economic development in the USA, with practitioner feedback.

scholarly journals Sustainability and risk

2015 ◽  
Vol 8 (1) ◽  
pp. 66-84
Author(s):  
Erika Meins ◽  
Daniel Sager
Keyword(s):  
Public Transportation ◽  
Probability Distributions ◽  
Property Value ◽  
Discounted Cash Flow ◽  
Content Type ◽  
Sustainability Criteria ◽  
Relative Contribution ◽  
States Of Nature ◽  
The Impact ◽  
Dcf Model

Purpose – This paper aims to identify the relative contribution of sustainability criteria to property value risk. Design/methodology/approach – A discounted cash flow (DCF) model is used to assess the effect of a given set of 42 sustainability sub-indicators on property value. The anticipated demand for each sustainability sub-indicator is described by four future states of nature. Their impact on costs or revenue is estimated and included in the model. Subjective probability distributions describe the occurrence of the future states of nature. Monte Carlo simulations of the DCF model are then used to estimate the impact of an individual feature on the risk (volatility) of the property value distribution. Findings – The results for Switzerland show that “use of thermal energy” (29.3 per cent), followed by “access to public transportation” (16.3 per cent), “day light” (9.6 per cent) and “story height” (6.3 per cent) have the highest single impact on property value risk. Practical implications – The results are used for a risk-based weighting of a sustainability rating. The rating illustrates how sustainability criteria affect the risk of specific properties and are used as a basis for real estate investment decisions. Originality/value – In this paper, an effort is made to rigorously ground sustainability ratings in financial theory.

A between-subject design to evaluate students' employability in the Lebanese labor market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kevin Sevag Kertechian ◽  
Silva Karkoulian ◽  
Hussein N. Ismail ◽  
Samar Samir Aad Makhoul
Keyword(s):  
Labor Market ◽  
Academic Success ◽  
Evaluation Process ◽  
Grade Point ◽  
Content Type ◽  
High Performing ◽  
Business Graduates ◽  
Subject Design ◽  
University Reputation ◽  
The Impact

PurposeThis study aims to examine the effect of experience abroad, academic success and university reputation on students' employability in the Lebanese labor market.Design/methodology/approachThe study uses a between-subject design to identify whether academic success, university reputation and experience abroad have an impact on how potential recruiters (i.e. employers) are perceiving student employability. The study uses 16 fictitious applications of business graduates, which differed in grade-point average, university reputation and experience abroad, rated by 784 Lebanese professionals.FindingsThe results suggest that high-performing students with experience abroad and high-performing students from a reputable university are perceived to be more employable. For low-performing students, having completed an experience abroad results in a lower reward in terms of employability.Research limitations/implicationsThe present study offers an analysis of students' employability through employers' lens; it offers insights for students on how to be perceived as more employable in a context where competition among future workers is fierce.Practical implicationsThe results of this research provide a roadmap for graduates for enhancing their employability in Lebanese markets and offer actionable insights to employers.Originality/valueThe most original contribution of this study is the analysis of university reputation impact on the likelihood of receiving positive feedback during the evaluation process. The impact of two Lebanese universities, one ranked in the QS ranking and one not, was investigated.

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