ICA Incentives, which has on several occasions provided me data on $100+ million incentives in Europe and the United States, reports on the announcements of large investment projects. Thus, the data summarized in the paper will omit the thousands of smaller projects in the United States that are subsidized by state and local governments. My guess (I have not seen the underlying data) is that the coverage of EU projects is more complete, since EU rules require pre-notification of subsidies to the European Commission and the Commission posts all state aid decisions on its website.
From page 10 of the paper, the total of incentive packages in 2011 through 2013 inclusive, is as follows [UPDATE: I discovered in a database previously supplied by ICA Incentives a number of federal loan guarantees and loans in 2011 and 2012, which I eliminate below]:
United State: $
European Union: $6.6 billion
Canada: $2.2 billion
South America: $8.4 billion (more than the EU, which has a GDP over 3 times as large)
Asia: $1 billion (I would guess this is an underestimate)
We can see that the United States gave more than
Moreover, the consequences of giving such large state and local incentives are enormous. As I have reported before, the value of state and local subsidies ($70 billion per year) substantially exceeds the cost of the state and local government jobs that were cut in the wake of the Great Recession. This is a huge opportunity cost for these governments as well as representing efficiency and equity losses as a result of the subsidies. With this additional evidence, the need for incentive reform is stronger than ever.
Cross-posted at Angry Bear.