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Comment on Kala Seetharam Sridhar's (1996) "Tax Costs and Employment Benefits of Enterprise Zones"

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  • John F. McDonald

    (University of Illinois at Chicago)

Abstract

This article is a comment on the evaluation of the Illinois Enterprise Zone program by Kala Seetharam Sridhar published in Economic Development Quarterly in 1996. Sridhar's evaluation method overstates the number of jobs created as a result of the Enterprise Zone program. The methodfails to recognize that many of the jobs created in an enterprise zone would have located in that zone in the absence of the program. For example, it is normalfor a new retail establishment that is replacing one that has moved out to obtain a building permitfor remodeling interior space and to qualifyfor a program subsidy. The jobs created in this new establishment cannot necessarily be attributed to the program.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:ecdequ:v:11:y:1997:i:3:p:222-224
    DOI: 10.1177/089124249701100305
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    Cited by:

    1. 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.
    2. Kala Seetharam Sridhar, 2005. "Benefits and Costs of Regional Development: Evidence from Ohio’s Enterprise Zone Programme," Palgrave Macmillan Books, in: Incentives for Regional Development, chapter 5, pages 87-114, Palgrave Macmillan.
    3. 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.

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