Who Benefits When State Governments Award Incentives to Politically-Connected Companies?

A new study finds that a company is nearly four times more likely to receive an economic incentive in a state where the company makes political contributions to state-level candidates. The results also show that awarding economic incentives to politically-connected firms is not the most effective use of taxpayer funds. 

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How Markets in Europe Opened Up as Guild Monopolies Declined in the Sixteenth Century

Markets don’t function well if they are ridden with frictions like lack of information or lack of trust. A new working paper finds that cities in the sixteenth century where monopolies of densely networked merchant guilds declined had significantly higher levels of printing, as they were early adopters of printing technology. Additionally, these cities were found on the Atlantic coast, where traders had the greatest incentives to form new connections with unfamiliar traders.  

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