Criticizes empirical research that measures the effectiveness of state and local development and tax policy in terms of employment, business starts, and new branches. Argues that changes in the level and distribution of economic welfare are a better measurement.

Most students attending colleges and universities, in the U.S. and the rest of the world, attend public institutions. This is a bit of a puzzle for economists, as it is clear that higher education provides private benefits to those who acquire it. This paper evaluates a number of arguments for...