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Business Economics (2022) 57:35–37 https://doi.org/10.1057/s11369-021-00245-0 BOOK RE VIE W Timothy J. Bartik: Making Sense of Incentives: Taming Business Incentives to Promote Prosperity W.E. Upjohn Institute, 2019 1,2 Cletus C. Coughlin Published online: 25 October 2021 © National Association for Business Economics 2021 Economic development incentives are highly controver- including taxes, spending, and regulation, can affect job sial. To wit, one argument suggests that such incentives are growth. What is especially problematic about economic unnecessary transfers to firms that could have funded highly development incentives is that they are provided selectively. valued public spending in numerous areas, such as educa- In other words, the government is discriminating across tion. On the other hand, one could argue that such incentives firms or, one might say, “picking winners.” increase jobs and incomes by providing the margin to attract A number of reasonable questions come to mind imme- firms to an area or retain firms already operating in an area diately. Should voters/taxpayers expect government officials that might be considering relocating. As a result, the incen- to do a good job in picking winners? Then, how might one tives are a key policy instrument in contributing to a region’s assess the performance of government officials? Even more
Business Economics – Springer Journals
Published: Jan 1, 2022
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