Economic development has long been an important focus of state politics; and political scientists have devoted considerable effort to analyzing the ability of policymakers to influence local economic conditions. Unfortunately, analysis in this area of state politics has been hampered by the lack of a stable and generalizable model of state-level political economy. We seek to contribute to such a model by arguing that previous research theoretically and empirically under-specifies a crucial element of the explanatory framework—education. We provide a theoretical argument for a more complex relationship between education and local economic conditions and find strong support for our arguments in a pooled analysis of state-level productivity
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