Most economists understand that “place-based” policies are justified by (i) place uniqueness (spatial heterogeneity), (ii) undesirable spatial consequences of economic growth and change, (iii) inefficiencies due to jurisdictional fragmentation, (iv) significant spatial interdependencies between metro and non-metro places, and (v) the potential to generate greater nation-wide welfare gains using place-based rather than other policies. This paper lays out the economic rationales both for and against place-based policy. The pitfalls and shortcomings of place-based policies include that the policies may (i) generate nothing but rents for the property owners in targeted places, (ii) attract or retain (trap) poor people in poor areas, (iii) distort business as well as human migration decisions, (iv) enable the postponement of necessary adjustments, (v) create dependencies, and are (vi) subject to abuse by place-based politicians.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number
11730.
Length: Date of creation: 21 Apr 2004 Date of revision: Handle: RePEc:isu:genres:11730
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070 Phone: +1 515.294.6741 Fax: +1 515.294.0221 Email: Web page: http://www.econ.iastate.edu More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Stephanie Bridges).
Related research
Keywords:
Find related papers by JEL classification: A1 - General Economics and Teaching - - General Economics D6 - Microeconomics - - Welfare Economics H0 - Public Economics - - General O2 - Economic Development, Technological Change, and Growth - - Development Planning and Policy R0 - Urban, Rural, and Regional Economics - - General
This paper has been announced in the following NEP Reports:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992.
"Growth in Cities,"
Journal of Political Economy,
University of Chicago Press, vol. 100(6), pages 1126-52, December.
[Downloadable!] (restricted)
Other versions:
Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991.
"Growth in Cities,"
NBER Working Papers
3787, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Did you know? You can include your works in the database easily by uploading them on the Munich Personal RePEc Archive (MPRA) if you do not have access to an institutional RePEc archive.