How Would You Know a Good Economic Development Policy if You Tripped Over One? Hint: Don’t Just Count Jobs
Author(s)
Courant, Paul N.
Abstract
Economic welfare promotion should not focus solely on jobs, and proper analysis should include the benefits public goods provide and the costs incurred by local governments. Cost-benefit analysis of tax incentives and other subsidies to industry often focuses on simple job creation as a measure of success. The cost analysis should include all social costs incurred, including externalities. Economic development programs should focus on tailoring aid to business based on the individual strengths and needs of particular communities.
