Sensible State and Local Economic Development

Abstract

Hardly a day goes by without the media reporting new economic development initiatives by states and localities in the United States. Competition is keen and the stakes are high because officials and the electorate view a successful economic development policy as being essential. One of the best recent examples, underscoring the intensity and importance of this issue, was the bidding war that the states of Indiana and Ohio waged in 1982 over the International Harvester Corporation. It is generally accepted that economic development initiatives are an important component of state and local public policy, and the electorate expects its elected officials to succeed in promoting economic development. Unfortunately, it is not always true that the policies adopted to promote development are efficient