Center for Business and Economic Research - Ball State University


CBER Data Center
Projects and PublicationsEconomic IndicatorsWeekly CommentaryCommunity Asset InventoryManufacturing Scorecard

About

Commentaries are published weekly and distributed through the Indianapolis Business Journal and many other print and online publications. Disclaimer

RSS Feed

Disclaimer

The views expressed in these commentaries do not reflect those of Ball State University or the Center for Business and Economic Research.

Recent

Educational Attainment, the 21st Century Fund and the Future of SchoolingIndiana ranks 42nd in educational attainment.

Big Savings for Ending Prevailing WageMy statistical models show that repealing state prevailing wage laws save taxpayers money.

Re-Thinking Economic Development A large share of the most mobile families—perhaps half—no longer need to live near where they work.

Money Illusion and InflationPrice fluctuation could cause inflation to last longer, but it didn’t cause the inflation, it simply extends the pain.

View archives

Top Tags

jobs and employment 231
economics 178
education 149
economic development 146
state and local government 129
taxes 123
finance 109
indiana 106
migration and population change 104
budget and spending 104
Browse all tags
Reporter / Admin Login

August 27, 2007

Coming to Indiana

This week marks the start of my tenure as Director of Ball State University’s Bureau of Business Research.  I take over from Pat Barkey whose thoughts on the State’s economy have long graced this column.  His will be hard shoes to fill.  

I have read over many of Pat’s old columns, and the one thing that stands out is how much we agree on the issues facing the state – and their solutions.  Contrary to the old stereotypes, hard headed economists usually come to similar conclusions.  

As I begin to watch Indiana’s economy in earnest I see a hopeful state of affairs, with just a few urgent concerns.  So, in the coming months, faithful readers of this column will be treated to discussions of a wide range of issues.    

Let me begin by offering a quick snapshot of the State’s economy through the eyes of a newcomer.  Here’s what I see in the State.   

First, Indiana is a wonderfully diverse place – the kind that only the American Midwest seems to produce.  Our state contains great cities, vibrant small towns and quiet rusticity.   This geographic diversity is accompanied by an economic variety that helps stabilize the State as a whole, though at the local level there are certainly pockets of both great prosperity and economic hardship.  

Hoosiers have benefited from a public policy climate that is demonstrably more market friendly than that of our neighbors – most notably Michigan, Illinois and increasingly Ohio.  This makes Indiana a more attractive location for business and residential relocation than our nearby neighbors.  We gain from our neighbor’s folly in the arena of taxes, regulatory climate and business costs. 

Nonetheless, personal income in Indiana has not been growing as rapidly as the nation as a whole.  This is a major concern. However, several factors likely contribute to this – many without an effective policy lever to formulate change.  For example agricultural sectors have lower wages (but greater wealth generation) than other sectors.  Also, the manufacturing sector (which employs more than 1 in 6 Hoosier workers) has experienced slower wage growth than other industries.  So, this worrisome income trend might be more due to our state’s industrial structure than to a deep seated weakness.  Even with this worry, the state’s economy presents a cautiously optimistic picture of the future.

My last observation as an outsider is that it is good to remember the many concerns facing the State (which I have touched lightly upon) are not confined to Indiana alone. Policymakers in every state worry about optimal tax structure, efficient local government, environmental regulation, population changes, quality of K-12 education, infrastructure costs, telecommunications access and health care financing.  In many areas Indiana State is in the middle of the pack or doing much better than average.  I’ll focus on the problem areas in later columns.

So, as my tenure at Ball State University and the IBJ begins, I see two critical roles for myself.  First, I will, in this column, provide timely commentary on the state of the State’s economy.  Second, I will continue to participate in the high quality public policy, economic and business research that has been the hallmark of Ball State University’s commitment to the State. 

Link to this commentary: https://commentaries.cberdata.org/149/coming-to-indiana

Tags: economics


About the Author

Michael Hicks cberdirector@bsu.edu

Michael J. Hicks, PhD, is the director of the Center for Business and Economic Research and the George and Frances Ball distinguished professor of economics in the Miller College of Business at Ball State University. Hicks earned doctoral and master’s degrees in economics from the University of Tennessee and a bachelor’s degree in economics from Virginia Military Institute. He has authored two books and more than 60 scholarly works focusing on state and local public policy, including tax and expenditure policy and the impact of Wal-Mart on local economies.

© Center for Business and Economic Research, Ball State University

About Ball State CBER Data Center

Ball State CBER Data Center is one-stop shop for economic data including demographics, education, health, and social capital. Our easy-to-use, visual web tools offer data collection and analysis for grant writers, economic developers, policy makers, and the general public.

Ball State CBER Data Center (cberdata.org) is a product of the Center for Business and Economic Research at Ball State University. CBER's mission is to conduct relevant and timely public policy research on a wide range of economic issues affecting the state and nation. Learn more.

Terms of Service

Center for Business and Economic Research

Ball State University • Whitinger Business Building, room 149
2000 W. University Ave.
Muncie, IN 47306-0360
Phone:
765-285-5926
Email:
cber@bsu.edu
Website:
www.bsu.edu/cber
Facebook:
www.facebook.com/BallStateCBER
Twitter:
www.twitter.com/BallStateCBER
Close