States and the Economy: Policymaking and Decentralization.

Until recently the importance of state governments to the economy and the ability of states to affect economic performance has been under-appreciated. This offering by Robert Wilson fits well into the growing new literature on state economic policy. Wilson argues that structural changes in the economy as well as economic and political decentralization are forcing state governments to adjust and reform their economic functions. States have responded to structural changes in different ways, but in the end, successful adaptation is viewed to be conditioned by the economic and political structure of a state and by the innovative capacity of state institutions.

The book provides a very descriptive empirical examination of state economies and economic policies over time. This is followed by case studies of three policy areas -- development and technology policy, telecommunications policy, and education and training -- which focus on the intergovernmental context of these policies and the historical role of the states in promoting economic growth.

The rich historical description of state economies and policies provided here is the strength of this book. It is also its weakness. The empirical analyses are interesting and informative, but never go beyond description to test explanations for the changes going on in state economic policy. Moreover, the recent literature on state political economy is not addressed here. This is unfortunate because the work of Paul Peterson, Bryan Jones and Paul Brace, and others would help place the analysis in context. One strength of the book is that it discusses a wide range of state policies that can effect the economy, not just economic development programs. Nevertheless it does not follow through and test how and to what extent state policies affect growth.

Wilson provides us with a generally well-written and well- researched text. Unfortunately, it's usefulness for scholars or the classroom is limited because of its descriptive focus. Nevertheless, it would serve as a nice second text to accompany and compliment a more analytical work such as Paul Brace's recent text on state economic performance.

Richard C. Feiock
Florida State University