IDEAS home Printed from https://ideas.repec.org/a/ags/jrapmc/132197.html
   My bibliography  Save this article

Benefits and Costs of Regional Development: Evidence from Ohio's Enterprise Zone Program

Author

Listed:
  • Seetharam Sridhar, Kala

Abstract

Enterprise zones are a tool of regional development policy, relying on tax incentives. The objective of the paper is to answer the questions : Are enterprise zones efficient? Are they efficient if adopted by high-unemployment areas? The research applies the questions to Ohio’s enterprise zone program because of the policy debate it has generated. The net benefits from employment created in the program are compared to program costs making different assumptions about employment. I find that the net benefits of regional development can be expected to be greater than their costs. However, because of their efficiency implications, I find that it could be beneficial for high unemployment areas to adopt tax incentive policies.

Suggested Citation

  • Seetharam Sridhar, Kala, 2001. "Benefits and Costs of Regional Development: Evidence from Ohio's Enterprise Zone Program," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 31(2), pages 1-32.
    • Handle: RePEc:ags:jrapmc:132197
    DOI: 10.22004/ag.econ.132197
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/132197/files/2001-2-1.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.132197?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Boarnet, Marlon G. & Bogart, William T., 1996. "Enterprise Zones and Employment: Evidence from New Jersey," Journal of Urban Economics, Elsevier, vol. 40(2), pages 198-215, September.
    2. Kala Seetharam Sridhar, 1996. "Tax Costs and Employment Benefits of Enterprise Zones," Economic Development Quarterly, , vol. 10(1), pages 69-90, February.
    3. David E. Dowall, 1996. "An Evaluation of California's Enterprise Zone Programs," Economic Development Quarterly, , vol. 10(4), pages 352-368, November.
    4. John F. McDonald, 1997. "Comment on Kala Seetharam Sridhar's (1996) "Tax Costs and Employment Benefits of Enterprise Zones"," Economic Development Quarterly, , vol. 11(3), pages 222-224, August.
    5. Papke, Leslie E., 1994. "Tax policy and urban development : Evidence from the Indiana enterprise zone program," Journal of Public Economics, Elsevier, vol. 54(1), pages 37-49, May.
    6. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, December.
    7. Dan Y. Dabney, 1991. "Do Enterprise Zone Incentives Affect Business Location Decisions?," Economic Development Quarterly, , vol. 5(4), pages 325-334, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jarosław M. Nazarczuk & Marlena Cicha-Nazarczuk, 2024. "Sustainable Employment Creation through the Polish Investment Zone in Lagging Regions," Sustainability, MDPI, vol. 16(12), pages 1-14, June.
    2. Sumei Zhang, 2019. "Rethinking U.S. enterprise zones: The role of research design in program evaluation," Local Economy, London South Bank University, vol. 34(6), pages 545-571, September.
    3. Daniele Bondonio & Robert T. Greenbaum, 2003. "A comparative evaluation of spacially targeted economic revitalization programs in the European Union and the United States," ICER Working Papers 03-2003, ICER - International Centre for Economic Research.
    4. repec:ind:nipfwp:19 is not listed on IDEAS
    5. repec:npf:wpaper:19 is not listed on IDEAS
    6. Sumei Zhang, 2020. "Do Research Methods Matter in Enterprise Zone Outcome Evaluations?," Economic Development Quarterly, , vol. 34(3), pages 299-309, August.
    7. Sridhar, Kala Seetharam, 2004. "Impact of the enterprise zone," Working Papers 04/19, National Institute of Public Finance and Policy.
    8. Jasper Beekmans & Huub Ploegmakers & Karel Martens & Erwin van der Krabben, 2016. "Countering decline of industrial sites: Do local economic development policies target the neediest places?," Urban Studies, Urban Studies Journal Limited, vol. 53(14), pages 3027-3047, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elias Einiö & Henry G. Overman, 2016. "The (Displacement) Effects of Spatially Targeted Enterprise Initiatives: Evidence from UK LEGI," SERC Discussion Papers 0191, Centre for Economic Performance, LSE.
    2. Gibbons, Stephen & Overman, Henry & Sarvimäki, Matti, 2021. "The local economic impacts of regeneration projects: Evidence from UK's single regeneration budget," Journal of Urban Economics, Elsevier, vol. 122(C).
    3. Overman, Henry & Gibbons, Steve & Sarvimaki, Matti, 2017. "The local economic impacts of regeneration projects: Evidence from UK’s Single Regeneration Budget," CEPR Discussion Papers 12311, C.E.P.R. Discussion Papers.
    4. Pender, John & Reeder, Richard, 2011. "Impacts of Regional Approaches to Rural Development: Initial Evidence on the Delta Regional Authority," Economic Research Report 262240, United States Department of Agriculture, Economic Research Service.
    5. Neumark, David & Kolko, Jed, 2010. "Do enterprise zones create jobs? Evidence from California's enterprise zone program," Journal of Urban Economics, Elsevier, vol. 68(1), pages 1-19, July.
    6. Robert T Greenbaum & John B Engberg, 1998. "The Impact Of State Urban Enterprise Zones On Business Outcomes," Working Papers 98-20, Center for Economic Studies, U.S. Census Bureau.
    7. Matias Busso & Patrick Kline, 2008. "Do Local Economic Development Programs Work? Evidence from the Federal Empowerment Zone Program," Cowles Foundation Discussion Papers 1639, Cowles Foundation for Research in Economics, Yale University.
    8. Thomas E. Lambert & Paul A. Coomes, 2001. "An Evaluation of the Effectiveness of Louisville’s Enterprise Zone," Economic Development Quarterly, , vol. 15(2), pages 168-180, May.
    9. Krupka, Douglas J. & Noonan, Douglas S., 2009. "Empowerment Zones, neighborhood change and owner-occupied housing," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 386-396, July.
    10. Krupka, Douglas J. & Noonan, Douglas S., 2009. "Neighborhood Dynamics and the Housing Price Effects of Spatially Targeted Economic Development Policy," IZA Discussion Papers 4308, Institute of Labor Economics (IZA).
    11. Patrick Kline & Enrico Moretti, 2014. "People, Places, and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 629-662, August.
    12. repec:ind:nipfwp:19 is not listed on IDEAS
    13. Robert T. Greenbaum & Jim Landers, 2009. "Why Are State Policy Makers Still Proponents of Enterprise Zones? What Explains Their Action in the Face of a Preponderance of the Research?," International Regional Science Review, , vol. 32(4), pages 466-479, October.
    14. Cynthia L. Rogers & Jill L. Tao, 2004. "Quasi-Experimental Analysis of Targeted Economic Development Programs: Lessons from Florida," Economic Development Quarterly, , vol. 18(3), pages 269-285, August.
    15. Daniele Bondonio, 2003. "Do Tax Incentives Affect Local Economic Growth? What Mean Impacts Miss in the Analysis of Enterprise Zone Policies," Working Papers 03-17, Center for Economic Studies, U.S. Census Bureau.
    16. Carlianne Patrick & Amanda Ross & Heather Stephens, 2016. "Designing Policies to Spur Economic Growth: How Regional Scientists Can Contribute to Future Policy Development and Evaluation," Working Papers 16-04, Department of Economics, West Virginia University.
    17. O'Keefe, Suzanne, 2004. "Job creation in California's enterprise zones: a comparison using a propensity score matching model," Journal of Urban Economics, Elsevier, vol. 55(1), pages 131-150, January.
    18. Felix, R. Alison & Hines, James R., 2013. "Who offers tax-based business development incentives?," Journal of Urban Economics, Elsevier, vol. 75(C), pages 80-91.
    19. Moretti, Enrico, 2011. "Local Labor Markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 14, pages 1237-1313, Elsevier.
    20. Sridhar, Kala Seetharam, 2000. "Tax Incentive Programs and Unemployment Rate," The Review of Regional Studies, Southern Regional Science Association, vol. 30(3), pages 275-298, Winter.
    21. repec:npf:wpaper:19 is not listed on IDEAS
    22. Fei, Fan & Hines, James R. & Horwitz, Jill R., 2016. "Are PILOTs property taxes for nonprofits?," Journal of Urban Economics, Elsevier, vol. 94(C), pages 109-123.

    More about this item

    Keywords

    Community/Rural/Urban Development;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jrapmc:132197. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/mcrsaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.