
Incentives to Attract Firms Induce Bad Selection [pdf] - elliekelly
http://www.economics.uci.edu/~aglazer/TaxIncentivesInefficient.pdf
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anongraddebt
Not an economist, but Glazer's conclusion doesn't seem terribly interesting:

"I do not claim that incentives to attract new plants always hurt the locality
offering the incentives. The new facilities incentives attract can be a
benefit. Perhaps most importantly, as Greenstone et al. (2010) show,
agglomeration economies exist.

My story shows a difference between local and state or national incentives.
For any one locality, a new facility may preclude the establishment of other
facilities. At the state or national level, that need not happen."

\----

The reason his conclusion seems weak in importance is that it is essentially
just the following:

For any locality, there is the possibility that a new facility will be a
determining cause in additional facilities not being built at some later
point.

A couple natural questions here are, "who would disagree with this?" or "have
a non-trivial number of economists in Glazer's subdiscipline not believed
this?"

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soVeryTired
No empirics. Just some dude waving his maths around.

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lusmd
This looks like very, very early work.

