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Stephen P.A. Brown, Kathy J. Hayes and Lori L. Taylor |
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State and Local Policy, Factor Markets, and Regional Growth |
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The Review of Regional Studies 2003 33(1): 40-60.
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Abstract:
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A large and growing literature has developed to explain how state and local policies affect factor
markets, firm location, and economic growth; but it has emerged in three distinct threads. These
threads have variously emphasized how policy and natural amenities affect regional economic
growth, employment growth, or firm location; how variations in policy and natural amenities can
lead to persistent wage differentials across regions; and how regional variation in factor inputs,
including public capital, affects output. In this article, we expand the modeling framework of
Roback and Gyourko and Tracy to integrate these threads into a single inquiry about how state and
local policies—including the provision of public capital—affect factor markets and economic
growth.
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