Theories of interjurisdictional competition

Abstract

What behavior can be expected from state and local governments, given market-analogy theories of intergovernmental competition (competition enhances efficiency) and game-theoretic models (competition is destructive)? How does the real world depart from these paradigms? What empirical hypotheses do they imply concerning the effectiveness of alternative competitive public policies? Paper: Daphne A. Kenyon Discussion: Caroline M. Hoxby, Andrew Reschovsky