Document Type

Working Paper

Publication Date

1996

College/Unit

Regional Research Institute

Document Number

9623

Department/Program/Center

Regional Research Institute

Abstract

Several arguments in the local economic development policy literature criticize practitioners for their continuing reliance on industrial recruitment, sometimes referred to as smokestack chasing. Why might practitioners rationally prefer this method over other available techniques? One theory is that practitioners face pressure to accomplish something within a short time frame, resulting in a high discount rate for economic development projects. A survey of local economic development practitioners using the contingent valuation technique supports the theory, finding that developers' discount rate is roughly 20%. The survey tests other theories as well.

Share

COinS