2015
DOI: 10.1257/pol.20120137
|View full text |Cite
|
Sign up to set email alerts
|

Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience

Abstract: International audienceThis paper shows that urban geography matters to the effectiveness of place-based policies, using the French enterprise zone program as a case study. Whereas this program created more jobs in spatially integrated neighborhoods, its impact on local wages was only visible in the more isolated ones. In addition, a focus on the average impact of the program would lead to the conclusion that it mostly succeeded in displacing preexisting firms, but a lower level of spatial isolation was a clear… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
1
1
1
1

Citation Types

4
63
0
4

Year Published

2015
2015
2023
2023

Publication Types

Select...
9
1

Relationship

0
10

Authors

Journals

citations
Cited by 82 publications
(71 citation statements)
references
References 24 publications
4
63
0
4
Order By: Relevance
“…The absence of impact is also consistent with Devereux et al (2007) in finding that firms are less responsive to government subsidies in areas where there are fewer existing plants in their industry. It is also arguably consistent with results by Briant et al (2012) on the impact of geographical constraints on the effectiveness of local tax breaks.…”
supporting
confidence: 87%
“…The absence of impact is also consistent with Devereux et al (2007) in finding that firms are less responsive to government subsidies in areas where there are fewer existing plants in their industry. It is also arguably consistent with results by Briant et al (2012) on the impact of geographical constraints on the effectiveness of local tax breaks.…”
supporting
confidence: 87%
“…Poor identification of  can be traced to the fact that, unlike for other parameters,  is not linked to a readily identifiable feature of the data, and is only identified by a functional form assumption on Ψ( e ). 10 The Table also reports standard errors, obtained 9 In estimation, we treat the spatial distribution of unemployment and vacancies as exogenous, as in most of the literature on the estimation of matching functions (see Petrongolo and Pissarides, 2001, for a survey). This is consistent with evidence from the policy simulation exercises described in Section IV, showing that the returns to job search -as measured by the probability of leaving unemployment or filling a vacancy -are not very responsive to local shocks.…”
Section: A Main Estimatesmentioning
confidence: 99%
“…The role of water bodies in urban economies have been investigated from perspectives such as the constraining of land supply due to lakes and oceans (Rose 1989) and the economic attractiveness of coastal living (Rappaport and Sachs 2003). Geographical boundaries have also been used instrumentally toward explaining disparities in the stimulative effects of local business policies (Briant, LaFourcade, and Schmutz 2015), to investigate cultural barriers to economic activity (Falck et al 2012), and to test for housing price response to local school quality (Gibbons, Machinb, and Silva 2013).…”
Section: Prior Literaturementioning
confidence: 99%