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Study

Assessing MEGA’s Economic Impact

By Michael D. LaFaive and James M. Hohman, published on Aug. 31, 2009

The discussion above indicates that only a small percentage of MEGA deals turn out as originally projected — less than 10 percent, according to our recent calculations — and that MEGA's new-job projections typically turn out to be more than three times what they should be. In addition, it suggests that some of the companies MEGA officials picked were ill-positioned not just for growth, but for remaining in business.

ISBN: 1-890624-87-X, SKU: S2009-06

The Michigan Economic Development Corporation: A Review and Analysis

  • Executive Summary
  • Introduction
  • The Rationale for Government Economic Development
  • What Is the Michigan Economic Development Corp.?
  • The Michigan Economic Growth Authority
    • MEGA’s Basic Performance Data
    • Assessing MEGA’s Economic Impact
      • From Performance to Effectiveness
      • A Shift-Share Analysis of the MEGA Program
  • Exploring the Economic Findings on MEGA
  • Other MEDC Programs
  • Literature Review and Analysis
  • The Economic State of Our State
  • Conclusion and Recommendations
  • Appendix A: A Sample of Correspondence With the MEDC
  • Appendix B: A New Mackinac Center Database on MEGA
  • Appendix C: Technical Appendix for Shift-Share Analysis

More by Michael D. LaFaive

History, Economics and Right-to-Work
Transparency Law Escapes Big Labor Chokehold

More by James M. Hohman

Multiplier Analyses Often Abused
A Matter of Perspective

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