Incentives to Pander: How Politicians Use Corporate Welfare for Political Gain (Business and Public Policy) - Hardcover

Jensen, Nathan M.; Malesky, Edmund J.

Hardcover

ISBN 10: 1108418902 ISBN 13: 9781108418904

Publisher: Cambridge University Press, 2018

Synopsis

Policies targeting individual companies for economic development incentives, such as tax holidays and abatements, are generally seen as inefficient, economically costly, and distortionary. Despite this evidence, politicians still choose to use these policies to claim credit for attracting investment. Thus, while fiscal incentives are economically inefficient, they pose an effective pandering strategy for politicians. Using original surveys of voters in the United States, Canada and the United Kingdom, as well as data on incentive use by politicians in the US, Vietnam and Russia, this book provides compelling evidence for the use of fiscal incentives for political gain and shows how such pandering appears to be associated with growing economic inequality. As national and subnational governments surrender valuable tax revenue to attract businesses in the vain hope of long-term economic growth, they are left with fiscal shortfalls that have been filled through regressive sales taxes, police fines and penalties, and cuts to public education.

About this title

Book Description:

A rigorous analysis of fiscal incentives, arguing that politicians choose to employ economically inefficient policies to claim credit for economic development. This book will be of interest to researchers and teachers in the fields of political science, economics, public policy, urban development and management.

About the Author:

Nathan M. Jensen is Professor of Government at the University of Texas, Austin. His research focusses on government economic development strategies, firm non-market strategies and business-government relations, as well as the politics of oil and natural resources, political risk in emerging markets, trade policy, and international institutions.

Edmund J. Malesky is a Professor of Political Economy and the Associate Chair of the Political Science Department at Duke University, North Carolina. He is a noted specialist in economic development, authoritarian institutions, and comparative political economy in Vietnam and has published extensively in leading political science and economic journals.

About this edition

• Publisher: Cambridge University Press
• Publication date: 2018
• ISBN 10: 1108418902
• ISBN 13: 9781108418904
• Binding: Hardcover
• Number of pages: 268