This paper studies fiscal foresight -- alterations of current behavior by forward-looking agents in anticipation of future policy changes – using variation in state job creation tax credits (JCTCs). Nearly half of the U.S. states enacted JCTCs between 1990 and 2007, and their unique...

This paper studies fiscal foresight – alterations of current behavior by forwardlooking agents in anticipation of future policy changes – using variation in state job creation tax credits (JCTCs).Nearly half of the U.S. states enacted JCTCs between 1990 and 2007, and their unique experiences...