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Kentucky Annual Report

Kentucky Annual Economic Report 2009
Kenneth R. Troske, John Garen, Devanathan Sudharshan, Roy A. Sigafus PDF: PDF icon Kentucky Annual Economic Report 2009.pdf

Kentucky Annual Economic Report 2008
Kenneth R. Troske, John Garen, Devanathan Sudharshan, Roy A. Sigafus PDF: PDF icon Kentucky Annual Economic Report 2008.pdf

Kentucky Annual Economic Report 2007
Kenneth R. Troske, John Garen, Devanathan Sudharshan, Roy A. Sigafus PDF: PDF icon Kentucky Annual Economic Report 2007.pdf

Kentucky Annual Economic Report 2006
Kenneth R. Troske, John Garen, Devanathan Sudharshan, Roy A. Sigafus PDF: PDF icon Kentucky Annual Economic Report 2006.pdf

Kentucky Annual Economic Report 2005
John Garen, William H. Hoyt, Glenn C. Blomquist, Devanathan Sudharshan, Roy A. Sigafus PDF: PDF icon Kentucky Annual Economic Report 2005.pdf

Research Report

Economic Growth in Kentucky: Why Does Kentucky Lag Behind the Rest of the South?
Christopher Jepsen, Kenneth Sanford, Kenneth R. Troske

Kentucky has consistently been one of the poorest states in the country between 1939 and the present. On top of this already low level of income, Kentucky has experienced fairly slow growth in output in recent years. Between 1997 and 2004, Kentucky had an average annual growth in real gross state product (GSP) of 1.6 percent, ranking 43 rd in terms of growth in GSP relative to the rest of the states.

In contrast to Kentucky’s relatively stagnant growth, many of Kentucky’s neighbors, especially to the south, have experienced relatively rapid growth in average earnings in recent years. In 1969, Georgia, Kentucky, North Carolina and Tennessee all had levels of average earnings that were 77-82 percent of the average earnings in the U.S., while Alabama had average earnings that were approximately 70 percent of the national average. By 2004, Kentucky’s average earnings remained at approximately 80 percent of the national average while average earnings in Georgia, North Carolina and Tennessee had grown to 90 percent of the national average, and average earnings in Alabama had grown to over 85 percent of the national average. In other words, while relative average earnings in Kentucky has been flat for the past forty years, average earnings in a number of southern states similar to Kentucky have experienced fairly rapid relative growth since 1969.

In this report, we examine whether there are identifiable factors that can explain why Kentucky remains mired at the bottom of the income distribution. We start by first estimating a standard growth regression using data from all the states in the continental U.S. to examine what factors are most important in explaining why some states have grown faster. For this part of the report, we draw on data from a number of sources covering the period from 1969 to 2004. Next we compare the growth of these factors in Kentucky with the growth of these factors in our comparison states: Alabama, Georgia, North Carolina and Tennessee. This comparison will allow us to identify which of these factors explain why these other states have grown faster than Kentucky. Finally, we examine various policies in our comparison states to see if we can identify specific policies that can explain why a given state experienced differential growth in one of these factors.

PDF: PDF icon Economic Growth in Kentucky.pdf

An Examination of Incentives to Attract and Retain Businesses in Kentucky
William Hoyt, Christopher Jepsen, Kenneth R. Troske

The offering of tax and other location-based incentives to firms considering locating operations in a state, as well as firms with existing operations, has become a common practice of both state and local governments in the past thirty years. However, these programs are not without their critics. Some of the concerns about these programs arise from the lack of strong evidence, either supportive or critical of these programs. The Kentucky Cabinet for Economic Development contracted with the Center for Business and Economic Research (CBER) to produce a series of reports examining the effectiveness of tax incentives in Kentucky.

PDF: PDF icon An Examination of Incentives to Attract and Retain Businesses.pdf

The Individual, Regional and State Economic Impacts of Kentucky Community and Technical Colleges
Glenn C. Blomquist, Paul A. Coomes, Christopher Jepsen, Brandon Koford, Barry Kornstein, Kenneth R. Troske

This report presents the results of our nine-month effort to measure the economic value of the Kentucky Community and Technical College System (KCTCS), both directly to its students around the state, and indirectly to all residents of Kentucky. We find wide public support for KCTCS, and a willingness to pay for an expansion of its programs. We also find a large variation in the individual returns to community and technical college education, in terms of expected work-life earnings by gender and by region of the state.

PDF: PDF icon The Individual Regional and State Economic Impacts.pdf

Fiscal Policy and Property Values
William Hoyt, John Garen

The purpose of this study is to inform on the current state of knowledge of the economics profession of the impacts of state and local taxes on property values. Our goal is also to suggest how to interpret some of the findings of this literature as well as to provide some conceptual background to assist in interpreting these findings.

PDF: PDF icon Fiscal Policy and Property Values.pdf