Journal of Economic Literature
Book Reviews
2026-09-01
John Diamond of Rice University reviews “Reining in the Competition for Capital” by Ann Markusen,. The EconLit Abstract of the reviewed work begins “Eight papers, originally presented at a conference hosted by the University of Minnesota’s Humphrey Institute of Public Affairs in the spring of 2004, explore the causes, character, and potential remedies for the growing spatial competition for capital. Papers discuss institutional and political determinants of incentive competition (Ann Markusen and Katherine Nesse); the sources and processes of tax and subsidy competition (Kenneth P. Thomas); the fiscal consequences of competition for capital (Peter Fisher); how the European Union manages subsidy competition (Adinda Sinnaeve); solving the problems of economic development incentives (Timothy J. Bartik); negotiating the ideal deal--which local governments have the most bargaining leverage (Rachel Weber); whether better job creation subsidies hold real promise for business incentive reformers (William Schweke); and nine concrete ways to curtail the economic war among the states (Greg LeRoy). Markusen is a professor in the Urban and Regional Planning Graduate Program and Director of the Project on Regional and Industrial Economics at the Humphrey Institute of Public Affairs, University of Minnesota. Index.”