Economic development.
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"Economic Development: The Role of State and Local Government in Wisconsin"
Stephen Malpezzi
La Follette Policy Report, Fall/Winter 2002, pp. 1-3, 14-19
Based on an extensive study of current academic research, this article examines the benefits of economic growth and evaluates the effectiveness of common economic development strategies. It challenges some commonly held notions about development, and raises a number of issues salient to every jurisdiction engaged in growing its economy. Focusing first on regional economies, Malpezzi asserts that a rapidly growing metropolitan economy increases opportunities for labor force participation, which reduces disparities in the distribution of income. Next, he disputes the notion that new development can damage a government's fiscal position, asserting that there is "effectively zero correlation" between population growth and surpluses, deficits, taxes, or expenditures. Opponents of incentives have long argued that economic development is a zero-sum game that merely reshuffles economic activity. Malpezzi argues that this argument may be "overstated," citing new research concluding that...
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