This paper proposes an empirical method to evaluate decentralized economic development programs with heterogeneous characteristics implemented in different regions or states. The evaluation design developed in the paper is a comparative analysis that operationalizes differences in regional policy features and controls for pre-intervention heterogeneous characteristics of targeted areas. The proposed method is illustrated and tested through the evaluation of the U.S. Enterprise Zone (EZ) programs. The results of the analysis show that the proposed evaluation design is an effective tool for turning the heterogeneity of decentralized economic development programs from a threat to the validity of the analysis into a great opportunity for testing the effectiveness of a variety of region (or state) specific policy implementation features.
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Find related papers by JEL classification: R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
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