Woodbury and Huang use econometric models to investigate how changes in the tax treatment of fringe benefits can be expected to influence the level of benefits and compensation provided by employers, federal revenues, and income inequality.

We evaluate the effects of state-provided financial incentives for biotech companies, which are part of a growing trend of placed-based policies designed to spur innovation clusters. We estimate that the adoption of subsidies for biotech employers by a state raises the number of star biotech...