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A Long-Term Evaluation of the First Generation of the French Urban Enterprise Zones

Author

Listed:
  • Pauline Givord

    (CREST, INSEE)

  • Simon Quantin

    (INSEE)

  • Corentin Trevien

    (CREST, INSEE, Sciences Po)

Abstract

This paper provides new empirical assessment on the long-term e ciency of locally-targeted tax incentives in revitalizing distressed areas, and on the impact on local population. We focus on the rst generation of the French \Enterprise Zone" initiative, implemented in 1997 in France. On the opposite to previous results of similar program in France, we observe strong positive impact of EZ on economic activity in the short-run, robust to several identi cation strategy. However, longrun estimates suggest that this program fails to impulse self-sustaining economic development. After ve years, the early positive results are reduced as the increase in business locations is partially o set by more frequent business discontinuations. Besides, the small impact on resident employment and on local services suggests a lack of accurate targeting.

Suggested Citation

  • Pauline Givord & Simon Quantin & Corentin Trevien, 2014. "A Long-Term Evaluation of the First Generation of the French Urban Enterprise Zones," Working Papers 2014-48, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2014-48
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    References listed on IDEAS

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    More about this item

    Keywords

    Enterprise Zones; Local Employment; Propensity Score Matching; Evaluation;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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