Measuring the effect of performance management in local economic development policy: the case of tax increment finance districts in the Dallas-Ft. Worth metroplex

Abstract

ABSTRACT Does performance management use in local governments actually bring about performance improvement? If so, can performance be attributed to the use of particular tools or approaches? This study examines the particular performance measurement tools and approaches being utilised within Tax Increment Finance (TIF) districts in one metropolitan area – the Dallas-Ft. Worth Metroplex – to ascertain whether they are positively associated with district tax revenues and property valuations. We utilise archival analysis of TIF district records to identify the presence and characteristics of four conceptual types of activities: strategic planning, performance measurement, performance reporting, and performance management. We then develop predictive models to obtain quantitative evidence of the effectiveness of particular observed approaches. Our findings offer a comparative assessment of the value of various tools and approaches in the highly competitive policy field of economic development, with broader implications for performance management and public management in local governments.