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In the appendix to this paper an overview of Michigan economic incentive legislation is presented (MSU Ag Econ Staff paper No. 79-79). This described Michigan's economic incentive program without conducting an analysis of the consequences of the program. The purpose of the following discussion is to analyze the impact of economic incentives, providing some insights into the incidence of benefits and costs resulting from Michigan's economic development program. This discussion is comprised of four parts: 1) The relationship between tax levels, industrial revenue bond financing, and economic growth; 2) A description of industrial revenue bond use on a national level, Michigan's program placed into perspective; 3) Summary and discussion of the results of "The Plant Location Survey" and other Office of Economic Development (OED) publications analyzing the impact of Act 198; and 4) Policy alternative and conclusions.


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