Econ Comments & Analysis
Real Clear Policy | When States Compete to Attract Businesses
Free-market fans often hold romantic notions about "competitive federalism": the idea that states and localities will cut taxes and trim regulations to attract businesses, reducing the size of government and expanding freedom for all. But as a new Mercatus Center working paper from Christopher J. Coyne and Lotta Moberg shows, the reality of luring companies to a jurisdiction is often much more cynical.
