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HardInformation and Ideas
In the United States, firms often seek incentives from municipal governments to expand to those municipalities. A team of political scientists hypothesized that municipalities are much more likely to respond to firms and offer incentives if expansions can be announced in time to benefit local elected officials than if they can’t. The team contacted officials in thousands of municipalities, inquiring about incentives for a firm looking to expand and indicating that the firm would announce its expansion on a date either just before or just after the next election.