Therese McGuire
Therese J. McGuire

ConAgra Foods Research Professorship in Strategic Management
Professor of Strategy

Print Overview

Therese J. McGuire is Professor of Strategy at the Kellogg School of Management at Northwestern University. McGuire's areas of expertise are state and local public finance, fiscal decentralization, property tax limitations, education finance, and regional economic development. She has written about and worked with various governments on state tax reform and on the impact of taxes on economic growth. In 1989 McGuire worked with a blue-ribbon commission and directed a study of revenues and expenditures for the State of Arizona. McGuire was President of the National Tax Association in 1999-2000, as well as the editor of the NTA's academic journal, the National Tax Journal from 2001 until 2009. Her publications have appeared in the National Tax Journal, the Journal of Regional Science, the Journal of Urban Economics, International Tax and Public Finance, and the Journal of Public Economics. McGuire has a B.A. with a dual major in Mathematics and Economics from the University of Nebraska-Lincoln and a Ph.D. in Economics from Princeton University.

Areas of Expertise
Development Economics
Public Finance
Public Management
Public Policy
Real Estate
Urban Economics

Print Vita
PhD, 1983, Economics, Princeton University
BA, 1978, Economics, Mathematics, University of Nebraska-Lincoln, Phi Beta Kappa

Academic Positions
Director, Kellogg School of Management, Northwestern University-present
Professor, Kellogg School of Management, Northwestern University-present
Department Chair, Kellogg School of Management, Northwestern University-present
Faculty Fellow, Institute for Policy Research, Northwestern University-present

Honors and Awards
Alumni-Master Award, College of Arts and Sciences, University of Nebraska-Lincoln, 2010
President, National Tax Association, 99-00
Alumni Achievement Award, Wisner-Pilger High School, 89-89

Editorial Positions
Member Editorial Board, Nordic Tax Journal, 2016
Member Editorial Advisory Board, National Tax Journal, 2009
Editor, National Tax Journal, 2001-2009

Print Research
Research Interests
State and local public finance, fiscal decentralization, property taxes, education finance, regional economic development, tax incentives

McGuire, Therese J., Teresa Garcia-Mila and Wallace E. Oates. Forthcoming. "Strength in Diversity? Fiscal Federalism among the Fifty U.S. States. International Tax and Public Finance.
Calsamiglia, Xavier, Teresa Garcia-Mila and Therese J. McGuire. 2013. Tobin Meets Oates: Solidarity and the Optimal Fiscal Federal Structure.
McGuire, Therese J., Richard F. Dye and Daniel McMillen. 2005. Evidence on the Short and Long Run Effects of Tax Limitations on Taxes and Spending. National Tax Journal. LVIII(2)
Dye, Richard F., Therese J. McGuire and Daniel McMillen. 2005. Are Property Tax Limitations More Binding over Time?. National Tax Journal. 58(2): 215-225.
Garcia-Mila, Teresa and Therese J. McGuire. 2002. Tax Incentives and the City. Brookings-Wharton Papers on Urban Affairs.
Dye, Richard F., Therese J. McGuire and David F. Merriman. 2001. The Impact of Property Taxes and Property Tax Classification on Business Activity in the Chicago Metropolitan Area. Journal of Regional Science. 41(4): 757-777.
Garcia-Mila, Teresa and Therese J. McGuire. 2001. Do Interregional Transfers Improve the Economic Performance of Poor Regions? The Case of Spain. International Tax and Public Finance. 8(3): 281-296.
Mark, Stephen T., Therese J. McGuire and Leslie E. Papke. 2000. The Influence of Taxes on Employment and Population Growth: Evidence from the Washington D.C. Metropolitan Area. National Tax Journal. 53(1): 105-123.
McGuire, Therese J.. 1999. Proposition 13 and Its Offspring: For Good or for Evil?. National Tax Journal. 52(1): 129-138.
Mark, Stephen T., David F. Merriman and Therese J. McGuire. 1998. Ivory Tower Meets Smoke-filled Back Rooms of Politics: An Academic Perspective on Illinois. Public Budgeting and Finance. 18(4): 22-35.
Garcia-Mila, Teresa and Therese J. McGuire. 1998. A Note on the Shift to a Service-Based Economy and the Consequences for Regional Growth. Journal of Regional Science. 38(2): 353-363.
Downes, Thomas A., Richard F. Dye and Therese J. McGuire. 1998. Do Limits Matter? Evidence on the Effects of Tax Limitations on Student Performance. Journal of Urban Economics. 43(3): 401-417.
Crihfield, John B and Therese J. McGuire. 1997. Infrastructure, Economic Development, and Public Policy. Regional Science and Urban Economics. 27(2): 113-116.
McGuire, Therese J. and Richard Dye. 1997. The Effect of Property Tax Limitation Measures on Local Government Fiscal Behavior. Journal of Public Economics. 66(3): 469-487.
McGuire, Therese J., Robert H. Porter and Teresa Garcia-Mila. 1996. The Effect of Public Capital in State-Level Production Functions Reconsidered. Review of Economics and Statistics. 78(1): 177-180.
McGuire, Therese J.. 1993. Industrial Mix as a Factor in the Growth and Variability of States' Economies. Regional Science and Urban Economics. 23(6): 731-748.
Dye, Richard F. and Therese J. McGuire. 1992. The Effect of Earmarked Revenues on the Level and Composition of Expenditures. Public Finance Review. 20(4): 543-556.
Dye, Richard F. and Therese J. McGuire. 1992. Sorting Out State Expenditure Pressures. National Tax Journal. 45(3): 315-329.
McGuire, Therese J. and Teresa Garcia-Mila. 1992. The Contribution of Publicly Provided Inputs to States' Economies. Regional Science and Urban Economics. 22(2): 229-241.
McGuire, Therese J.. 1991. State and Local Tax Reform for the 1990s: Implications from Arizona. Journal of Policy Analysis and Management. 10(1): 64-77.
Dye, Richard F. and Therese J. McGuire. 1991. Growth and Variability of State Individual Income and General Sales Taxes. National Tax Journal. 44(1): 55-66.
Hughes, MarkAlan and Therese J. McGuire. 1991. A Market for Exclusion: Trading Low-Income Housing Obligations Under Mount Laurel III. Journal of Urban Economics. 29(2): 207-217.
McGuire, Therese J.. 1987. The Effect of New Firm Locations on Local Property Taxes. Journal of Urban Economics. 22(2): 223-229.
McGuire, Therese J.. 1986. Interstate Tax Differentials, Tax Competition, and Tax Policy. National Tax Journal. 39(3): 367-373.
Wasylenko, Michael and Therese J. McGuire. 1985. Jobs and Taxes: The Effect of the Business Climate on States' Employment Growth Rates. National Tax Journal. 38(4): 497-511.
McGuire, Therese J.. 1985. Are Local Property Taxes Important in the Intrametropolitan Location Decisions of Firms?. Journal of Urban Economics. 18(2): 226-234.
McGuire, Therese J.. 1983. Firm Location in a Tiebout world. Journal of Regional Science. 23(2): 211-222.
Book Chapters
McGuire, Therese J., Leslie E. Papke and Andrew Reschovsky. 2015. "Local Funding of Schools: The Property Tax and Its Alternatives." In Handbook of Research in Education Finance and Policy, edited by Helen F. Ladd and Margaret E. Goertz, New York, NY: Routledge.
McGuire, Therese J. and Teresa Garcia-Mila. 2008. "Public Infrastructure." In The New Palgrave Dictionary of Economics, edited by Lawrence Palgrave and Steve Durlauf, London: Palgrave Macmillan.
Garcia-Mila, Teresa and Therese J. McGuire. 2007. "Fiscal Decentralization in Spain: An Asymmetric Transition to Democracy." In Fiscal Fragmentation in Decentralized Countries: Subsidiarity, Solidarity and Asymmetry, edited by Richard M. Bird, Robert D. Ebel, Edward Elgar Publishing.
McGuire, Therese J. and David F. Merriman. 2006. "State Spending on Social Assistance Programs Over the Business Cycle." In Working and Poor: How Economic and Policy Changes Are Affecting Low-Wage Workers, edited by Rebecca Blank, Sheldon Danziger, Robert Schoeni, New York, NY: Russell Sage Foundation.
McGuire, Therese J.. 2001. "Alternatives to Property Taxation for Local Government." In Property Taxation and Local Government Finance: Essays in Honor of C. Lowell Harriss, edited by Wallace E. Oates, Cambridge, Massachusetts: Lincoln Institute of Land Policy.
McGuire, Therese J.. 1999. "The States, Welfare Reform, and the Business Cycle." edited by Sheldon H. Danziger, Kalamazoo, Michigan: W.E. Upjohn Institute for Employment Research.
McGuire, Therese J.. 1997. "Intergovernmental Fiscal Relations and Social Welfare Policy." In Intergovernmental Fiscal Relations: Perspectives and Prospects, edited by Ronald C. Fisher, Norwell, Massachusetts: Kluwer Academic Publishers.
McGuire, Therese J. and Richard Dye. 1992. "Expanding the Sales Tax Base: Implications for Growth and Stability." In Sales Taxation: Critical Issues in Policy and Administration, edited by William F. Fox, Westport, Connecticut: Praeger Publishers.
McGuire, Therese J. and Douglas Holtz-Eakin. 1991. "Federal Aid to States and Localities and the Appropriate Competitive Framework." In Competition Among States and Local Governments: Efficiency and Equity in American Federalism, edited by Daphne A. Kenyon, John Kincaid, Washington, D.C.: Urban Institute Press.
McGuire, Therese J. and Teresa Garcia-Mila. 1991. "The Effects of Central Government Financing on Regional Government Expenditures in Spain." In Public Finance with Several Levels of Government, edited by Rémy Prud'homme, The Hague, Netherlands: Foundation Journal Public Finance.
McGuire, Therese J. and Douglas Holtz-Eakin. 1988. "State Grants-in-Aid and Municipal Government Budgets: A Case Study of New Jersey." In Research in Urban Economics, edited by Michael E. Bell, Greenwich, Connecticut: JAI Press, Inc.
McGuire, Therese J.. "Illinois and ADM both made the right call." Chicago Tribune.
McGuire, Therese J. and Teresa Garcia-Mila. "One thing Spain can teach us: how not to spread the wealth in your country." The Guardian.
McGuire, Therese J. and Kim S. Rueben. "The Colorado Revenue Limit: The Economic Effects of TABOR." State Tax Notes. 40(6); May 8, 2006: 459-463.
McGuire, Therese J.. 1991. State and Local Finance for the 1990s: A Case Study of Arizona. Tempe, Arizona: School of Public Affairs, Arizona State University.
McGuire, Therese J. and Mark Alan Hughes. 1990. National Trends and Local Policies in Urban Housing, Volume 8 of Research in Urban Economics. Greenwich, Connecticut: JAI Press, Inc.
McGuire, Therese J. and Robert Ebel. 1986. Final Report of the Minnesota Tax Study Commission, Volume 2. St. Paul, MN: Butterworths.
Conference Proceedings
McGuire, Therese J. and Richard Dye. 1998. "Block Grants and the Sensitivity of State Revenues to Recession.".
McGuire, Therese J. and Howard Krane. 1998. "Rationalizing the Financing of Local Governments in the Chicago Metropolitan Area." In Proceedings of the 90th (1997) Annual Conference on Taxation, Washington DC: National Tax Association.
McGuire, Therese J. and Kim S. Rueben. 1997. "Tax and Bond Referenda in California and Illinois: Observations on Local Governments Operating Under State-Imposed Constraints." In Proceedings of the 89th (1996) Annual Conference of Taxation, Washington DC: National Tax Association.

Print Teaching
Teaching Interests
State and local public finance, public policy
Full-Time / Evening & Weekend MBA
Public Economics for Business Leaders: State and Local Policy (KPPI-480-0)
Why did Chicago win the competition for the relocation of Boeing's corporate headquarters? Did the city give away the store? Why are property values higher in neighborhoods with good public schools? Why do commercial and industrial properties face significantly higher property tax rates than residential properties? In this course we apply tools and concepts of microeconomics to analyze how state and local governments operate and how their decisions affect the business environment. Topics include tax incentives for business, K-12 education finance, local property taxes, and state fiscal crises.

Education Consulting Lab (KPPI-918-0)
The Education Consulting Lab class provides students interested in consulting, the education sector, or both the opportunity to work with schools and school districts on projects of strategic importance to the schools. Working closely with the professor, teams of 3-5 students will work with senior administrators at the schools to agree upon project scope, objectives, and analytical approaches. Incorporating instructor and client guidance, student teams will work independently to conduct research, data analysis, and interviews (as appropriate). At the end of the quarter, teams will present their findings and recommendations to senior leaders at the schools. Clients will include public school districts, charter school networks, and private schools in the Chicago metropolitan region. Enrollment in this course is by application only.

Field Study (STRT-498-0)
Field Studies include those opportunities outside of the regular curriculum in which a student is working with an outside company or non-profit organization to address a real-world business challenge for course credit under the oversight of a faculty member.