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Quasi-Experimental Analysis of Targeted Economic Development Programs: Lessons from Florida

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Author Info

  • Cynthia L. Rogers
  • Jill L. Tao

    (University of Oklahoma)

Abstract

The authors highlight three sources of endogeneity bias that typically haunt analyses of local government policies, and offer an empirical methodology for estimating program impacts given such concerns. They investigate Florida’s experience with implementing two common targeted economic development policies, community redevelopment areas (CRAs) and enterprise zones (EZs). Developing a simple application decision model as a guide, they find significant differences in policy implementation for small cities compared with larger cities. Florida’s small-city program implementation offers a unique opportunity to compare areas that received state-level approval for the programs with all areas that qualified for but did not receive designation using a quasi-experimental framework. In so doing, the authors explicitly address the potential for endogeneity bias caused by programrationing on the part of administrators and by nonrandom targeting of distressed areas. Consistent with existing research, they do not find evidence validating the efficacy of targeted development programs for small cities.

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Bibliographic Info

Article provided by in its journal Economic Development Quarterly.

Volume (Year): 18 (2004)
Issue (Month): 3 (August)
Pages: 269-285

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Handle: RePEc:sae:ecdequ:v:18:y:2004:i:3:p:269-285

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Related research

Keywords: enterprise zones; community redevelopment; quasi-experimental research design; endogeneity bias; targeted development;

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Cited by:
  1. Bondonio, Daniele & Greenbaum, Robert T., 2007. "Do local tax incentives affect economic growth? What mean impacts miss in the analysis of enterprise zone policies," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 37(1), pages 121-136, January.
  2. Gobillon, Laurent & Magnac, Thierry & Selod, Harris, 2010. "Do unemployed workers benefit from enterprise zones? The French experience," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 645, Institut d'Économie Industrielle (IDEI), Toulouse.
  3. Junbo Yu & Peter Nijkamp, 2010. "Methodological Challenges and Institutional Barriers in the Use of Experimental Method for the Evaluation of Business Incubators: Lessons from the US, EU, and China," Working Papers, Regional Research Institute, West Virginia University 201004, Regional Research Institute, West Virginia University.

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