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An Evaluation of the Effectiveness of Louisville’s Enterprise Zone

Author

Listed:
  • Thomas E. Lambert

    (Spalding University)

  • Paul A. Coomes

    (University of Louisville)

Abstract

Louisville, Kentucky, has one of the oldest and largest enterprise zones (EZs) in the United States, yet until recently, the program had not been independently evaluated. Perhaps because no clearly superior evaluation methodology has emerged in the literature, the efficacy of EZ programs around the United States remains a contentious subject among scholars and policy makers alike. The authors take a quasi-experimental approach in evaluating Louisville’s EZ, using many different measures to give the program every chance to show success. Program tax exemptions and administrative costs of more than $55 million within the 13-year period studied are identified. The measures reveal that one of the EZ’s three objectives was obtained in one geographic subset of the zone, but not because of the EZ policy treatment. The research adds one more case study to the EZ literature and provides another indication of the questionable benefits of EZ programs.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:ecdequ:v:15:y:2001:i:2:p:168-180
    DOI: 10.1177/089124240101500205
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    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. 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.
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    Cited by:

    1. E. Lambert, Thomas, 2022. "An evaluation of Churchill Downs’ tax increment financing district," Journal of Urban Regeneration and Renewal, Henry Stewart Publications, vol. 15(4), pages 354-359, June.
    2. Hooton, Christopher Alex, 2019. "The application of micro-geographic economic analysis in urban policy evaluation," Evaluation and Program Planning, Elsevier, vol. 72(C), pages 125-135.
    3. Yuxi Luo & Zhaohua Zhang & Jun Zheng & Diane Hite, 2021. "The Neighborhood Effects of a Place-Based Policy—Causal Evidence from Atlanta’s Economic Development Priority Areas," Sustainability, MDPI, vol. 13(12), pages 1-16, June.
    4. Sumei Zhang, 2015. "Impacts of Enterprise Zone Policy on Industry Growth," Economic Development Quarterly, , vol. 29(4), pages 347-362, November.
    5. Nidhi Chaudhary & Jonathan Potter, 2019. "Evaluation of the local employment impacts of enterprise zones: A critique," Urban Studies, Urban Studies Journal Limited, vol. 56(10), pages 2112-2159, August.
    6. 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.
    7. Devon Lynch & Jeffrey S. Zax, 2011. "Incidence and Substitution in Enterprise Zone Programs: The Case of Colorado," Public Finance Review, , vol. 39(2), pages 226-255, March.
    8. Laura A. Reese & Minting Ye, 2011. "Policy Versus Place Luck: Achieving Local Economic Prosperity," Economic Development Quarterly, , vol. 25(3), pages 221-236, August.
    9. 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.
    10. 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.
    11. 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.
    12. Sumei Zhang, 2020. "Do Research Methods Matter in Enterprise Zone Outcome Evaluations?," Economic Development Quarterly, , vol. 34(3), pages 299-309, August.
    13. Thomas E. Lambert, 2020. "Short-Term Versus Long-Term Effects of the Louisville Enterprise Zone Incentives: A Response to Sumei Zhang," Economic Development Quarterly, , vol. 34(3), pages 294-298, August.

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