Monday, December 10, 2012

The Uselessness of Economic Development Incentives

In summary, Richard Florida says in this article that "The bigger issue is that incentives do little to alter the locational calculus of most companies. The broad body of evidence on incentives, including the Times series, finds that incentives do not actually cause companies to choose certain locations over others. Rather, companies typically select locations based on factors such as workforce, proximity to markets, and access to qualified suppliers, and then pit jurisdictions against one another to extract tax benefits and other incentives." More here

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