State-local tax policies to encourage growth and development have been roundly criticized as detrimental to social welfare. In response, recent proposals have included delimiting the ability of states and localities to fashion tax policies. Not only are such proposals unworkable, but they fail...

By distinguishing industrial R&D from manufacturing production, this study identifies a local economy's comparative advantage by activity rather than by product. The Chicago area's comparative advantage has shifted away from production and toward R&D activity during the 1976 to 1985 period....

Drawing from both the professional literature and from a conference held at the Federal Reserve Bank of Chicago in 2004, the author summarizes findings and draws implications concerning the locational tendencies of stand-alone headquarters operations. In the United States, the geography of large...