Can state governments make policies that support sustainable economic growth without undermining it in the long term? This question reverberates throughout American states as the repercussions of the Great Recession take hold. Drawing upon the theory of contestable markets, this book develops a framework for analyzing how democratic politics and jurisdictional rivalries shape how states govern their economies. The institutional design and control of governments and configuration of jurisdictional competition for economic resources can limit problematic policy regimes. Using historical,...