Policy versus Place Luck: Achieving Local Economic Prosperity
Main question: What is the relative impact of place luck as well as economic development in economic growth, in the long-term?
Other research questions:
Can prosperity of the economy be explained better within the local policies of development or within simple place luck? Which are the most important or most crucial aspects of place luck to the health of an economy? Are there certain economic development policies that are focused on economic prosperity than others are? Does other attributes of cities such as quality of schools, services and safety contribute to economic growth?
Importance of asking the question:
To find out the real contributor to economic growth in the long-term especially in cities He mentions that in some cities, growth might be contributed to by the attractiveness of the place rather than policies put in place. Therefore, asking these questions is crucial since it give a clear view of what contributes more to economic health.
Unique national data collected that includes surveys from public officials. The data sets are from census data that is collected over three decades, which covers several areas such as environment, amenities and health amongst others.
Despite environment and natural features contribution to prosperity, policies trump them. The other finding is that traditional policies to development appear not to correlate with economic development. The final finding is that public policy is much stronger in contributing to economic growth than any other policy.
Considering that the presence of good weather and proximity of natural features contributes to economic health, doe it mean cities with such are more prosperous than cities without such advantages. Since economic development, tools are not related to economic health and probably contribute to a poor economy, should they be done away with? Since public policies are related to economic health, should this be the focus of governments in an effort to gain prosperity? Does it mean public policies could never act in a way that does not correlate to economic health?