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Aaron N. Gruen, principal of the urban-economics, market-research, land-use policy, and pre-development services firm Gruen Gruen + Associates, shares his thoughts on how to combat skyrocketing gas and housing costs.

There’s probably nothing academics and other researchers can do to change local officials’ reliance on business attraction incentives to secure corporate headquarters and other significant facility investments. Countless number of studies have shown the tax breaks states and cities offer companies to relocate or expand often don’t pay off. A new study by economists from Columbia Business School and Princeton University, for example, found that the incentives offered by states and localities do not have substantial employment spillovers in the local economy. Still, many localities believe they have no choice but to attract new businesses with incentives. “In many parts of the country, if you’re going to get ...