What Do We Know about Enterprise Zones?

Papke, Leslie E.

doi:10.3386/w4251

Cited by 40 publications

(12 citation statements)

References 23 publications

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“…An extensive review of this literature can be found in Peters and Fisher (2002). They find that while early econometric studies of the effects of state enterprise zones usually found positive results (e.g., Erickson and Friedman 1990, Papke 1993, Papke 1994, more recent results have been much less favorable. 4 Peters and Fisher offer several possible explanations for this set of findings.…”

Section: Literaturementioning

confidence: 99%

Empowerment Zones, neighborhood change and owner-occupied housing

Krupka

Noonan

2009

Regional Science and Urban Economics

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This paper examines the effects of a generous, spatially-targeted economic development policy (the federal Empowerment Zone program) on local neighborhood characteristics and on the neighborhood quality of life, taking into account the interactions amongst the policy, changes in neighborhood demographics and neighborhood housing stock. Urban economic theory posits that housing prices in a small area should increase as quality of life increases, because people will be willing to pay more to live in the area, but these changes in prices and quality of life will also affect the demographics of the population through sorting and the housing stock through reinvestment. Using census block-group-level data, we examine how housing prices respond to the Empowerment Zone policy intervention. Changes in the other dimensions of neighborhood quality (demographics and housing stock characteristics) will also help determine the total -or full -effect on housing values of the policy intervention. This paper estimates these direct and full effects in a simultaneous equations setting, compares direct and indirect effects and examines the robustness of the effects to alternate estimation strategies. We find strong evidence for substantively large and highly significant direct price effects, while results suggest that the indirect effects are substantively small or even negative.

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Section: Literaturementioning

confidence: 99%

Empowerment Zones, neighborhood change and owner-occupied housing

Krupka

Noonan

2009

Regional Science and Urban Economics

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“…Previous work has modeled the effect of zone-based wage subsidies on employment outcomes, including Gravelle (1992), Papke (1993), Moore (2001) and McGuire and GaricaMila (2002). We use a simple cost minimization model where the firm minimizes total cost (TC) of production for a given level of output (x).…”

Section: Ez Wage Tax Credit: Program Background and Modelmentioning

confidence: 99%

The Effect of Location-Based Tax Incentives on Establishment Location and Employment across Industry Sectors

Hanson

Rohlin

2010

Public Finance Review

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Abstract:This paper examines the potential for location-based employment tax incentives to have a differential effect on establishment location and employment across industry sectors. We model the differential effect of the location-based federal Empowerment Zone (EZ) wage tax credit on equilibrium labor and total cost savings across industry sectors. The model guides our empirical work, as we test the effect of the program across industry sectors. Our empirical analysis shows that location based-tax incentives have a positive effect on firm location in some of the industries our model predicts and a negative effect in industries that could be crowded out.

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“…Papke (1993Papke ( , 1994, using annual time series data from zone and non-zone Indiana cities, found some evidence of a positive effect of the Indiana enterprise zone program on unemployment and inventories. Extending her time series, Papke (2000) concludes that Indiana's enterprise zone inventory tax credit may have led businesses to invest in inventory rather than in more productive machinery and equipment.…”

Section: Introductionmentioning

confidence: 99%

The impact of state enterprise zones on urban manufacturing establishments

Greenbaum

Engberg

2004

J Policy Anal Manage

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Since the early 1980s, the vast majority of states have implemented enterprise zones. This paper analyzes urban zones in six states, examining the factors that states use to choose zone locations and the subsequent effect of the zones on business activity and employment. The source of outcome data is the U.S. Bureau of Census' longitudinal research database (LRD), which tracks manufacturing establishments over time. Matched sample and geographic comparison groups are created to measure the impact of zone policy on employment, establishment, shipment, payroll, and capital spending outcomes. Consistent with previous findings, the difference-in-difference estimates indicate that zones have little effect, on average. However, by exploiting the establishment-level data to examine gross as well as net changes, the analysis finds that zones have a positive effect on the outcomes of new establishments and a negative effect on the outcomes of previously existing establishments. © 2004 by the Association for Public Policy Analysis and Management.

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What Do We Know about Enterprise Zones?

Cited by 40 publications

References 23 publications

Empowerment Zones, neighborhood change and owner-occupied housing

Empowerment Zones, neighborhood change and owner-occupied housing

The Effect of Location-Based Tax Incentives on Establishment Location and Employment across Industry Sectors

The impact of state enterprise zones on urban manufacturing establishments

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