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Why Some States Grow Faster than Others: New Growth Models for State Economic Policy
Author(s) -
Polzin Paul E.
Publication year - 2001
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/0017-4815.00166
Subject(s) - state (computer science) , economics , state policy , politics , public economics , reliability (semiconductor) , economic base analysis , base (topology) , growth theory , public policy , political science , economic growth , microeconomics , computer science , neoclassical economics , law , mathematical analysis , power (physics) , physics , mathematics , algorithm , quantum mechanics
Recent studies have identified factors statistically related to differences in state economic growth. These findings relate to regional policy because they appear to identify political options that could then be justified as improving growth. This paper evaluates the reliability of these studies as policy guides. It finds that most statistical conclusions are fragile and are ttherefore risky policy guides Economic base theory performs well, and provides the most reliable state level policy options. These policies, however, have to be crafted carefully to avoid pitfalls associated with traditional (and perhaps unpopular) basic industries.