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A comparative evaluation of spacially targeted economic revitalization programs in the European Union and the United States

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  • Daniele Bondonio
  • Robert T. Greenbaum

Abstract

This paper compares and contrasts the United States federal Empowerment Zone and European Union Objective 2 programs that geographically target economic revitalization incentives. Since 1989, both programs have designated predominately industrial or urban areas as being distressed and worthy of government incentives in three separate rounds. The paper uses a probit econometric model to comparatively evaluate the characteristics of the areas that were targeted. The paper finds that while the programs were fashioned for different reasons and thus had different goals, the programs on both continents initially targeted very distressed areas. However, consistent with the fears of critics of spatial targeting, subsequent rounds of designation greatly expanded the programs, and in most cases, lead to less precise targeting.

Suggested Citation

  • 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.
    • Handle: RePEc:icr:wpicer:03-2003
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    References listed on IDEAS

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    1. Peter S. Fisher, 1997. "Tax and spending incentives and enterprise zones," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 109-138.
    2. Bondonio, Daniele & Engberg, John, 2000. "Enterprise zones and local employment: evidence from the states' programs," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 519-549, September.
    3. Timothy J. Bartik, "undated". "What Should the Federal Government Be Doing About Urban Economic Development?," Upjohn Working Papers tjb1994c, W.E. Upjohn Institute for Employment Research.
    4. 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.
    5. Leslie E. Papke, 1993. "What Do We Know about Enterprise Zones?," NBER Chapters, in: Tax Policy and the Economy, Volume 7, pages 37-72, National Bureau of Economic Research, Inc.
    6. Bondonio, Daniele, 2002. "Evaluating the Employment Impact of Business Incentive Programs in EU Disadvantaged Areas. A case from Northern Italy," POLIS Working Papers 27, Institute of Public Policy and Public Choice - POLIS.
    7. Bondonio, Daniele, 2001. "Evaluating Decentralized Policies: How to Compare the Performance of Economic Development Programs across Different Regions or States," POLIS Working Papers 16, Institute of Public Policy and Public Choice - POLIS.
    8. 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.
    9. 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.
    10. Alan H. Peters & Peter S. Fisher, 2002. "State Enterprise Zone Programs: Have They Worked?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number sezp.
    11. 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.
    12. Timothy J. Bartik, 2000. "Solving the Many Problems with Inner City Jobs," Upjohn Working Papers 00-66, W.E. Upjohn Institute for Employment Research.
    13. Robert Greenbaum & John Engberg, 2000. "An Evaluation Of State Enterprise Zone Policies," Review of Policy Research, Policy Studies Organization, vol. 17(2‐3), pages 29-45, June.
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    Cited by:

    1. Mara Giua, 2014. "Spatial Discontinuity for the Impact Assessment of the EU Regional Policy. The Case of Italian Objective 1 Regions," Departmental Working Papers of Economics - University 'Roma Tre' 0197, Department of Economics - University Roma Tre.
    2. Riccardo Crescenzi & Mara Giua, 2018. "One or Many Cohesion Policies of the European Union? On the Diverging Impacts of Cohesion Policy across Member States," SERC Discussion Papers 0230, Centre for Economic Performance, LSE.
    3. James H. Spencer & Paul Ong, 2004. "An Analysis of the Los Angeles Revitalization Zone: Are Place-Based Investment Strategies Effective Under Moderate Economic Conditions?," Economic Development Quarterly, , vol. 18(4), pages 368-383, November.

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    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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