Economic Development Strategies: Taxes, Incentives, and Public Expenditures

Abstract

Economic development strategies may include tax, incentive, and public expenditure policies. Budget-constrained state and local governments must make tradeoffs when determining the final mix of economic development and other public policies each year. In this paper, I first provide descriptive evidence on economic development policy tradeoffs. I then classify economic development strategies and relate them to real GDP per capita growth.