IDEAS home Printed from https://ideas.repec.org/a/taf/jpropr/v30y2013i1p67-85.html
   My bibliography  Save this article

The impact of enterprise zone tax incentives on local property markets in England: who actually benefits?

Author

Listed:
  • Shaun A. Bond
  • Ben Gardiner
  • Peter Tyler

Abstract

Research on the impact of property taxes on local real estate markets has a long history in the urban economics literature but few studies have considered this issue in the context of the commercial real estate market or on data from outside the USA. This is surprising given the use which governments make of property tax exemptions to assist local regeneration with the UK Government recently announcing some 24 new enterprise zones (EZs) in England. In this study we use a novel data-set on commercial real estate leases to investigate the incidence of the local property tax savings. Our data-set covers both taxed and tax exempt areas during the operation of the EZ designations in the UK. Our findings show that a large part of the tax savings appears to be captured in higher rents charged by landlords.

Suggested Citation

  • Shaun A. Bond & Ben Gardiner & Peter Tyler, 2013. "The impact of enterprise zone tax incentives on local property markets in England: who actually benefits?," Journal of Property Research, Taylor & Francis Journals, vol. 30(1), pages 67-85, March.
    • Handle: RePEc:taf:jpropr:v:30:y:2013:i:1:p:67-85
    DOI: 10.1080/09599916.2012.721381
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09599916.2012.721381
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09599916.2012.721381?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Matias Busso & Patrick Kline, 2008. "Do Local Economic Development Programs Work? Evidence from the Federal Empowerment Zone Program," Cowles Foundation Discussion Papers 1639, Cowles Foundation for Research in Economics, Yale University.
    2. Hilber, Christian A. L., 2011. "The economics implications of house price capitalization a survey of an emerging literature," LSE Research Online Documents on Economics 58596, London School of Economics and Political Science, LSE Library.
    3. 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.
    4. Hanson, Andrew, 2009. "Local employment, poverty, and property value effects of geographically-targeted tax incentives: An instrumental variables approach," Regional Science and Urban Economics, Elsevier, vol. 39(6), pages 721-731, November.
    5. Krupka, Douglas J. & Noonan, Douglas S., 2009. "Neighborhood Dynamics and the Housing Price Effects of Spatially Targeted Economic Development Policy," IZA Discussion Papers 4308, Institute of Labor Economics (IZA).
    6. David Stadelmann & Steve Billon, 2015. "Capitalization of fiscal variables persists over time," Papers in Regional Science, Wiley Blackwell, vol. 94(2), pages 347-363, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Business rates and the Scottish economy
      by Brian Ashcroft in Scottish Economy Watch on 2015-11-12 19:51:58

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. M. Poulhès, 2015. "Are Enterprise Zones Benefits Capitalized into Commercial Property Values? The French case," Documents de Travail de l'Insee - INSEE Working Papers g2015-13, Institut National de la Statistique et des Etudes Economiques.
    3. Matthew Gobey & Karolis Matikonis, 2021. "Small business property tax reductions and job growth," Small Business Economics, Springer, vol. 56(1), pages 277-292, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bernini, Cristina & Pellegrini, Guido, 2011. "How are growth and productivity in private firms affected by public subsidy? Evidence from a regional policy," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 253-265, May.
    2. Gibbons, Stephen & Overman, Henry & Sarvimäki, Matti, 2021. "The local economic impacts of regeneration projects: Evidence from UK's single regeneration budget," Journal of Urban Economics, Elsevier, vol. 122(C).
    3. Gobillon, Laurent & Magnac, Thierry & Selod, Harris, 2012. "Do unemployed workers benefit from enterprise zones? The French experience," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 881-892.
    4. Krupka, Douglas J. & Noonan, Douglas S., 2009. "Empowerment Zones, neighborhood change and owner-occupied housing," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 386-396, July.
    5. Sumei Zhang, 2015. "Impacts of Enterprise Zone Policy on Industry Growth," Economic Development Quarterly, , vol. 29(4), pages 347-362, November.
    6. Marchand, Joseph, 2012. "Local labor market impacts of energy boom-bust-boom in Western Canada," Journal of Urban Economics, Elsevier, vol. 71(1), pages 165-174.
    7. Neumark, David & Simpson, Helen, 2015. "Place-Based Policies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1197-1287, Elsevier.
    8. Neumark, David & Kolko, Jed, 2010. "Do enterprise zones create jobs? Evidence from California's enterprise zone program," Journal of Urban Economics, Elsevier, vol. 68(1), pages 1-19, July.
    9. Judith K. Hellerstein & David Neumark, 2011. "Employment in Black Urban Labor Markets: Problems and Solutions," NBER Working Papers 16986, National Bureau of Economic Research, Inc.
    10. Accetturo, Antonio & de Blasio, Guido, 2012. "Policies for local development: An evaluation of Italy's “Patti Territoriali”," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 15-26.
    11. Gobillon, Laurent & Magnac, Thierry & Selod, Haris, 2012. "L’effet des Zones Franches Urbaines sur le Retour à l’Emploi," CEPREMAP Working Papers (Docweb) 1209, CEPREMAP.
    12. Roberto Basile & Valerio Filoso, 2018. "The market value of political partisanship: Quasi‐experimental evidence from municipal elections," Papers in Regional Science, Wiley Blackwell, vol. 97(S1), pages 193-209, March.
    13. Krupka, Douglas J. & Noonan, Douglas S., 2009. "Neighborhood Dynamics and the Housing Price Effects of Spatially Targeted Economic Development Policy," IZA Discussion Papers 4308, Institute of Labor Economics (IZA).
    14. 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.
    15. Sumei Zhang, 2020. "Do Research Methods Matter in Enterprise Zone Outcome Evaluations?," Economic Development Quarterly, , vol. 34(3), pages 299-309, August.
    16. Alessandra Amendola & Marinella Boccia & Gianluca Mele & Luca Sensini, 2023. "Do fiscal policies affect the firms’ growth and performance? Urban versus rural area," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 1-33, March.
    17. 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.
    18. Richard Smith, 2016. "Did the Community Renewal Tax Incentives Pirate Businesses From Other Places?," Economic Development Quarterly, , vol. 30(1), pages 46-61, February.
    19. Givord, Pauline & Quantin, Simon & Trevien, Corentin, 2018. "A long-term evaluation of the first generation of French urban enterprise zones," Journal of Urban Economics, Elsevier, vol. 105(C), pages 149-161.
    20. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jpropr:v:30:y:2013:i:1:p:67-85. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJPR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.