The Bartik Benefit-Cost Model of Business Incentives is designed to calculate the benefits and costs for a specific incented project. An example of an incented project could be one with state job-creation credits provided to a new battery plant, or local property-tax abatements provided for an expansion of a corporate headquarters. Benefits and costs are defined as effects on the per capita real incomes of a state’s residents.

The most transparent version of the Bartik Benefit-Cost Model of Business Incentives is implemented as an Excel workbook. The model also can be implemented in a Python version. The Python version makes it easier to automate running hundreds of incentive simulations. The Excel workbook makes it easier for users to see the intermediate calculations, which aids in understanding the model’s workings. 

Minimum Required Inputs

  • Number of incented jobs, by year, and how they evolve over time
  • Dollars of incentives provided each year
  • Industry
  • Project multiplier: using BEA or IMPLAN, or assuming around two, based on research

The Upjohn Institute is willing to provide the model free of charge. Those interested in accessing the model may submit a request to download it.