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Essays in the Economics of Crime and Punishment

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Although there is no economic freedom index for metropolitan areas, there are data available on taxes and spending. One of the most important components of the various economic freedom indices is the tax burden. Taxes remove resources from private decision- makers and put them in the hands of elected officials and bureau- crats. The latter face much weaker incentives to use those resources efficiently and lack the information to be able to do so. As a result, jurisdictions with higher tax burdens will tend to have less prosper- ous economies. Furthermore, high-tax areas will tend to be less attractive to residents and businesses. Because people and employ- ers are mobile,.

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