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


  • Cynthia L. Rogers
  • Jill L. Tao

    (University of Oklahoma)


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.

Suggested Citation

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

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    Cited by:

    1. Wenhua Di & Daniel L. Millimet, 2017. "Targeted business incentives and the debt behavior of households," Empirical Economics, Springer, vol. 52(3), pages 1115-1142, May.
    2. 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, vol. 37(1), pages 121-136, January.
    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. 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 Working Paper 2010-04, Regional Research Institute, West Virginia University.
    5. Juan Tomas Sayago-Gomez & Gianfranco Piras & Donald Lacombe & Randall Jackson, 2015. "Impact Evaluation of Investments in the Appalachian Region: A Reappraisal," Working Papers Working Paper 2015-06, Regional Research Institute, West Virginia University.
    6. repec:rri:wpaper:201004 is not listed on IDEAS


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