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What Should the Federal Government Be Doing About Urban Economic Development?

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Abstract

The federal government should focus its policies towards economic development on areas in which the federal government has some unique advantages. Federal policy should: (1) discourage financial subsidies to specific large firms by state and local governments; (2) expand the federal role in economic development services in which national action has some special advantages, such as developing information on foreign markets, encouraging large national banks to be more involved in economic development, supporting the development of the "Information Superhighway," and encouraging new technology development; (3) provide modest support for state and local efforts to increase business productivity through technology extension efforts and customized job training programs; (4) encourage more and higher quality evaluation of state and local economic development programs; (5) support experiments that link economic development efforts with hiring the disadvantaged; (6) relax federal regulations, such as regulations on the cleanup of older industrial sites, that impede local economic development.

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Bibliographic Info

Paper provided by W.E. Upjohn Institute for Employment Research in its series Upjohn Working Papers and Journal Articles with number tjb1994c.

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Handle: RePEc:upj:weupjo:tjb1994c

Note: Appears in Cityscape: A Journal of Policy Development and Research 1(1): 267-291
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Keywords: local economic development; urban growth; federal government;

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  1. Harry J. Holzer & Richard Block & Marcus Cheatham & Jack H. Knott, 1993. "Are training subsidies for firms effective? The Michigan experience," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(4), pages 625-636, July.
  2. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  3. Timothy J. Bartik, 2004. "Economic Development," Book chapters authored by Upjohn Institute researchers, in: J. Richard Aronson & Eli Schwartz (ed.), Managememnt Policies in Local Government Finance, pages 355-390 W.E. Upjohn Institute for Employment Research.
  4. Gary Burtless, 1985. "Are targeted wage subsidies harmful? Evidence from a wage voucher experiment," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 39(1), pages 105-114, October.
  5. Jones, Stephen R G, 1989. "Reservation Wages and the Cost of Unemployment," Economica, London School of Economics and Political Science, vol. 56(222), pages 225-46, May.
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Cited by:
  1. Randall W. Eberts & George A. Erickcek, 2002. "The Role of Partnerships in Economic Development and Labor Markets in the United States," Upjohn Working Papers and Journal Articles 02-75, W.E. Upjohn Institute for Employment Research.
  2. Timothy J. Bartik, 2004. "Incentive Solutions," Upjohn Working Papers and Journal Articles 04-99, W.E. Upjohn Institute for Employment Research.
  3. Daniele Bondonio & Robert T. Greenbaum, 2003. "A comparative evaluation of spacially targeted economic revitalization programs in the European Union and the United States," ICER Working Papers 03-2003, ICER - International Centre for Economic Research.

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