In thinking about the effects of state or local government fiscal policy on economic development, attention is

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In thinking about the effects of state or local government fiscal policy on economic development, attention is usually focused on what government can do to attract economic activity. Some communities actually discourage or prohibit new industrial or commercial investment, however. What are the gains to the community from new business investment? What are the costs or problems to a community from a new shopping center, for instance? What about a new manufacturing plant? When would a community discourage these types of activities?

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