American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience
American Economic Journal: Economic Policy
vol. 7,
no. 2, May 2015
(pp. 88–124)
Abstract
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)Citation
Briant, Anthony, Miren Lafourcade, and Benoît Schmutz. 2015. "Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience." American Economic Journal: Economic Policy, 7 (2): 88–124. DOI: 10.1257/pol.20120137Additional Materials
JEL Classification
- H25 Business Taxes and Subsidies including sales and value-added (VAT)
- H32 Fiscal Policies and Behavior of Economic Agents: Firm
- L52 Industrial Policy; Sectoral Planning Methods
- R32 Other Spatial Production and Pricing Analysis
- R38 Production Analysis and Firm Location: Government Policy
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