Local and state governments routinely compete for economic activity by offering firms tax breaks and subsidies. While we have empirical evidence to show that large industrial plants produce significant local benefits, we know little about the type of firm that local governments most seek to...

The economic theory of federalism is largely built around the premise that more heterogeneous preferences result in more decentralized policy-making. Despite its prominence and importance, this central tenet of economic federalism has never been empirically evaluated. This paper presents the...

The economic theory of federalism is largely built around the premise that more heterogeneous preferences result in more decentralized policy making. Despite its prominence and importance, this central tenet of economic federalism has never been empirically evaluated. This paper presents the...