This 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 determinant of the decision to create new firms from scratch. (JEL H25, H32, L52, R32, R38)
Briant, Anthony, Miren Lafourcade, and Benoît Schmutz.
"Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience."
American Economic Journal: Economic Policy,
Business Taxes and Subsidies including sales and value-added (VAT)
Fiscal Policies and Behavior of Economic Agents: Firm
Industrial Policy; Sectoral Planning Methods
Other Spatial Production and Pricing Analysis
Production Analysis and Firm Location: Government Policy