Transportation by car inevitably involves parking. Donald Shoup outlines the problems posed by illegal “apron” parking in the neighborhoods around UCLA (cars which project over the sidewalk) and the excess demand for free (unpriced) parking in the area. He notes that there are market solutions involving fees for permit parking and the use of shared cars. A market approach could generate revenue that could be used for neighborhood enhancement. While resistance to change is inevitable, parking on sidewalks violates federal disability law and ultimately must be discontinued. Cities and states often see great value in attracting movie and TV production to their locales. But as Patrick Adler points out, there are other forms of entertainment that are often neglected, notably music. The music industry is under strain, as the Internet has changed access to, and distribution of, recorded music. However, there remains a market for live music and music festivals. And there is the potential for local economic gain from hosting such activities. Local festivals tend to encourage and boost local talent and thus the economic development of the local music industry. But as Adler also points out, there are cost externalities of such festivals in terms of policing and public services. In some cases – such as Coachella near Los Angeles – the immediate localities that carry the cost do not reap the benefits which go to a more distant location. Local governments can find themselves under pressure to improve their “business climates.” The threat is that businesses will leave or not enter their jurisdictions if the climate is poor. As William Parent points out, individuals and groups often begin ideologically to define business climate and what attracts and retains business. Parent examines a case in which two groups in California on the opposite end of the ideological divide agreed to examine the climate issue analytically. What was found didn’t fit the usual notion that low taxes and little regulation were the keys to a good business‐attracting and business‐retaining climate. Most of the action in the local labor market does not involve entrance and exit of businesses. The areas within LA that seemed to be growing both jobs and high wages were those with higher taxes and reputations for difficult regulatory hurdles. Areas doing poorly often used tax incentives to try and pull in jobs. It appears that business‐attractive areas experience an enhanced tax base as economic activity increases. The result is more demand for services and picky upper‐ end residents with environmental concerns. At the end of the day, however, the report produced for legislative consumption tended to ignore such controversial empirical observations. The interface between policy analysis and the politics of policy making is often imperfect, as this case study demonstrates. Daniel J.B. Mitchell Professor Emeritus UCLA Anderson Graduate School of Management and UCLA Luskin School of Public Affairs
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