IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Place-based tax exemptions and displacement effects: An evaluation of the Zones Franches Urbaines program

  • P. GIVORD

    (Insee)

  • R. RATHELOT

    (Insee-Crest)

  • P. SILLARD

    (Insee)

We propose to evaluate the impact of the French Zones Franches Urbaines on economic activity. This public-funded place-based program, comparable to US enterprise zones, exempts new and existing firms from taxes for a period of at least 5 years. For the purpose of this evaluation, we merged several administrative datasets at the firm level. This allows us to exhaustively observe business creations and stocks, as well as employment and financial outcomes for each firm at a precise geographical level. We focus on the second wave of the program, during which treated territories were selected among a pool of deprived territories according to a known set of covariates. The way treatment was assigned makes the conditional independence assumption credible in our case. Overall, we find significant effects on business creation and on employment while the effect on firms that were located in the treated areas before the program is not significant, regardless of the outcome. Finally, we provide evidence of significant negative spillovers of the program on neighboring areas.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.insee.fr/en/publications-et-services/docs_doc_travail/G2011-13.pdf
File Function: Document de travail de la DESE numéro G2011-13
Download Restriction: no

Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2011-13.

as
in new window

Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:crs:wpdeee:g2011-13
Contact details of provider: Postal:
15 Boulevard Gabriel Peri 92244 Malakoff Cedex

Phone: 01 41 17 50 50
Web page: http://www.insee.fr
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Manning, Alan & Pischke, Jörn-Steffen, 2006. "Comprehensive versus Selective Schooling in England in Wales: What Do We Know?," IZA Discussion Papers 2072, Institute for the Study of Labor (IZA).
  2. James E. Rosenbaum & Anita Zuberi, 2010. "Comparing residential mobility programs: design elements, neighborhood placements, and outcomes in MTO and Gautreaux," Housing Policy Debate, Taylor & Francis Journals, vol. 20(1), pages 27-41, January.
  3. 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.
  4. Ham, John C. & Swenson, Charles & İmrohoroğlu, Ayşe & Song, Heonjae, 2011. "Government programs can improve local labor markets: Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Community," Journal of Public Economics, Elsevier, vol. 95(7), pages 779-797.
  5. GOBILLON Laurent & MAGNAC Thierry & SELOD Harris, 2007. "The effect of location on finding a job in the Paris region," Research Unit Working Papers 0703, Laboratoire d'Economie Appliquee, INRA.
  6. Briant, Anthony & Lafourcade, Miren & Schmutz, Benoît, 2013. "Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience," CEPREMAP Working Papers (Docweb) 1316, CEPREMAP.
  7. Gilles Duranton & Laurent Gobillon & Henri G. Overman, 2011. "Assessing the Effects of Local Taxation using MicroGeographic Data," Post-Print halshs-00754517, HAL.
  8. Pierre-Philippe COMBES & Gilles DURANTON & Laurent GOBILLON, 2010. "The Identification of Agglomeration Economies," Working Papers 2010-52, Centre de Recherche en Economie et Statistique.
  9. Laurent Gobillon & Thierry Magnac & Harris Selod, 2012. "Do unemployed workers benefit from enterprise zones? The French experience," PSE - Labex "OSE-Ouvrir la Science Economique" hal-00812979, HAL.
  10. Pauline Givord & Simon Quantin & Corentin Trevien, 2015. "A Long-Term Evaluation of the First Generation of the French Urban Enterprise Zones," Working Papers 2014-48, Centre de Recherche en Economie et Statistique.
  11. GOBILLON Laurent & SELOD Harris & ZENOU Yves, 2007. "The mechanisms of spatial mismatch," Research Unit Working Papers 0701, Laboratoire d'Economie Appliquee, INRA.
  12. Joel A. Elvery, 2009. "The Impact of Enterprise Zones on Resident Employment," Economic Development Quarterly, , vol. 23(1), pages 44-59, February.
  13. Krupka, Douglas J. & Noonan, Douglas S., 2008. "Empowerment Zones, Neighborhood Change and Owner Occupied Housing," IZA Discussion Papers 3320, Institute for the Study of Labor (IZA).
  14. Jed Kolko & David Neumark, 2009. "Do Some Enterprise Zones Create Jobs?," NBER Working Papers 15206, National Bureau of Economic Research, Inc.
  15. repec:hal:wpaper:halshs-00695225 is not listed on IDEAS
  16. David Neumark & Jed Kolko, 2008. "Do Enterprise Zones Create Jobs? Evidence from California's Enterprise Zone Program," NBER Working Papers 14530, National Bureau of Economic Research, Inc.
  17. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," NBER Working Papers 6699, National Bureau of Economic Research, Inc.
  18. 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.
  19. Billings, Stephen B., 2011. "Estimating the value of a new transit option," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 525-536.
  20. 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.
  21. Leslie E. Papke, 1991. "Tax Policy and Urban Development: Evidence From The Indiana Enterprise Zone Program," NBER Working Papers 3945, National Bureau of Economic Research, Inc.
  22. Robert Greenbaum & Daniele Bondonio, 2004. "Losing Focus: A Comparative Evaluation of Spatially Targeted Economic Revitalization Programmes in the US and the EU," Regional Studies, Taylor & Francis Journals, vol. 38(3), pages 319-334.
  23. Alan H. Peters & Peter S. Fisher, 2002. "State Enterprise Zone Programs: Have They Worked?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number sezp.
  24. Bondonio, Daniele & Engberg, John, 2000. "Enterprise zones and local employment: evidence from the states' programs," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 519-549, September.
  25. 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.
  26. 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.
  27. Robert T. Greenbaum & John B. Engberg, 2004. "The impact of state enterprise zones on urban manufacturing establishments," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(2), pages 315-339.
  28. Landers, Jim, 2006. "Why Don't Enterprise Zones Work? Estimates of the Extent that EZ Benefits are Capitalized into Property Values," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(1).
  29. Devereux, Michael P. & Griffith, Rachel, 2002. "Evaluating Tax Policy for Location Decisions," CEPR Discussion Papers 3247, C.E.P.R. Discussion Papers.
  30. Gutirrez Romero, Roxana, 2009. "Estimating the impact of England's area-based intervention 'New Deal for Communities' on employment," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 323-331, May.
  31. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:crs:wpdeee:g2011-13. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (D3E)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.