IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/33511.html
   My bibliography  Save this paper

The U.S. Place-Based Policy Supply Chain

Author

Listed:
  • Gordon H. Hanson
  • Dani Rodrik
  • Rohan Sandhu

Abstract

Place-based policy in the United States comprises a wide range of government programs that are spread across federal, state, and local agencies and that rely on public, private, and nonprofit organizations for policy design and implementation. We document how loosely connected vertical policy supply chains distribute resources from federal and state governments to recipients at the local level. The apparatus is the product of 150 years of policy innovation, both from the top down, with the federal government periodically launching major initiatives whose place-based impacts tend to be long-lived (even if the specific policies are not), and from the bottom up, with state and local actors engineering their own policy solutions, many of which have endured and now constitute modern policy practice. That practice includes not just tax incentives for business investment, the subject of most economic research on place-based policy, but support for community redevelopment, workforce development, small business promotion, technological innovation, and regional planning and strategy. Intermediary organizations that connect government agencies to local recipients are central to resource delivery. Because they tend to be created, funded, and (or) run by non-state actors, there appears to be wide geographic variation in organizational capacity for place-based policy. Understanding the causes and consequences of that variation is needed for a full accounting of how place-based policy works in the U.S.

Suggested Citation

  • Gordon H. Hanson & Dani Rodrik & Rohan Sandhu, 2025. "The U.S. Place-Based Policy Supply Chain," NBER Working Papers 33511, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:33511
    Note: ITI
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w33511.pdf
    Download Restriction: Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.
    ---><---

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

    Other versions of this item:

    References listed on IDEAS

    as
    1. Valero, Anna & Van Reenen, John, 2019. "The economic impact of universities: Evidence from across the globe," Economics of Education Review, Elsevier, vol. 68(C), pages 53-67.
    2. Lawrence F. Katz & Jonathan Roth & Richard Hendra & Kelsey Schaberg, 2022. "Why Do Sectoral Employment Programs Work? Lessons from WorkAdvance," Journal of Labor Economics, University of Chicago Press, vol. 40(S1), pages 249-291.
    3. Ryan A. Decker & John Haltiwanger & Ron S. Jarmin & Javier Miranda, 2020. "Changing Business Dynamism and Productivity: Shocks versus Responsiveness," American Economic Review, American Economic Association, vol. 110(12), pages 3952-3990, December.
    4. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
    5. Michael Greenstone & Richard Hornbeck & Enrico Moretti, 2010. "Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 536-598, June.
    6. Pablo D Fajgelbaum & Eduardo Morales & Juan Carlos Suárez Serrato & Owen Zidar, 2019. "State Taxes and Spatial Misallocation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 333-376.
    7. Marios Michaelides & Peter Mueser, 2020. "The Labor Market Effects of US Reemployment Policy: Lessons from an Analysis of Four Programs during the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 38(4), pages 1099-1140.
    8. Michael Greenstone & Alexandre Mas & Hoai-Luu Nguyen, 2020. "Do Credit Market Shocks Affect the Real Economy? Quasi-experimental Evidence from the Great Recession and "Normal" Economic Times," American Economic Journal: Economic Policy, American Economic Association, vol. 12(1), pages 200-225, February.
    9. David Card & Jochen Kluve & Andrea Weber, 2018. "What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 894-931.
    10. Ben Zou, 2018. "The Local Economic Impacts of Military Personnel," Journal of Labor Economics, University of Chicago Press, vol. 36(3), pages 589-621.
    11. Taylor Jaworski & Carl T. Kitchens, 2019. "National Policy for Regional Development: Historical Evidence from Appalachian Highways," The Review of Economics and Statistics, MIT Press, vol. 101(5), pages 777-790, December.
    12. Jensen, Amalie & Marble, William & Scheve, Kenneth & Slaughter, Matthew J., 2021. "City limits to partisan polarization in the American public," Political Science Research and Methods, Cambridge University Press, vol. 9(2), pages 223-241, April.
    13. Cailin Slattery & Owen Zidar, 2020. "Evaluating State and Local Business Incentives," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 90-118, Spring.
    14. Fredrik Andersson & Harry J. Holzer & Julia I. Lane & David Rosenblum & Jeffrey Smith, 2024. "Does Federally Funded Job Training Work? Nonexperimental Estimates of WIA Training Impacts Using Longitudinal Data on Workers and Firms," Journal of Human Resources, University of Wisconsin Press, vol. 59(4), pages 1244-1283.
    15. Enrico Moretti, 2014. "Local Economic Development, Agglomeration Economies, and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 275-331.
    16. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    17. Iseul Choi & Donald Moynihan, 2019. "How to foster collaborative performance management? Key factors in the US federal agencies," Public Management Review, Taylor & Francis Journals, vol. 21(10), pages 1538-1559, October.
    18. Wang, Jia, 2018. "Strategic interaction and economic development incentives policy: Evidence from U.S. States," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 249-259.
    19. Greg Howard & Russell Weinstein & Yuhao Yang, 2024. "Do Universities Improve Local Economic Resilience?," The Review of Economics and Statistics, MIT Press, vol. 106(4), pages 1129-1145, July.
    20. Nicholas Bloom & Aprajit Mahajan & David McKenzie & John Roberts, 2020. "Do Management Interventions Last? Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 198-219, April.
    21. Richard V. Burkhauser & Kevin Corinth & James Elwell & Jeff Larrimore, 2024. "Evaluating the Success of the War on Poverty since 1963 Using an Absolute Full-Income Poverty Measure," Journal of Political Economy, University of Chicago Press, vol. 132(1), pages 1-47.
    22. Matias Busso & Jesse Gregory & Patrick Kline, 2013. "Assessing the Incidence and Efficiency of a Prominent Place Based Policy," American Economic Review, American Economic Association, vol. 103(2), pages 897-947, April.
    23. Mark Colas & Kevin Hutchinson, 2021. "Heterogeneous Workers and Federal Income Taxes in a Spatial Equilibrium," American Economic Journal: Economic Policy, American Economic Association, vol. 13(2), pages 100-134, May.
    24. Steven J. Davis & John Haltiwanger, 2024. "Dynamism Diminished: The Role of Housing Markets and Credit Conditions," American Economic Journal: Macroeconomics, American Economic Association, vol. 16(2), pages 29-61, April.
    25. Skocpol, Theda & Ganz, Marshall & Munson, Ziad, 2000. "A Nation of Organizers: The Institutional Origins of Civic Voluntarism in the United States," American Political Science Review, Cambridge University Press, vol. 94(3), pages 527-546, September.
    26. Allen J. Scott & Michael Storper, 2015. "The Nature of Cities: The Scope and Limits of Urban Theory," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 39(1), pages 1-15, January.
    27. Timothy J. Bartik, 2020. "Using Place-Based Jobs Policies to Help Distressed Communities," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 99-127, Summer.
    28. Cailin Slattery & Owen Zidar, 2020. "Evaluating State and Local Business Tax Incentives," Working Papers 261, Princeton University, Department of Economics, Center for Economic Policy Studies..
    29. Evan Mast, 2020. "Race to the Bottom? Local Tax Break Competition and Business Location," American Economic Journal: Applied Economics, American Economic Association, vol. 12(1), pages 288-317, January.
    30. Dorfman, Nancy S., 1983. "Route 128: The development of a regional high technology economy," Research Policy, Elsevier, vol. 12(6), pages 299-316, December.
    31. Barr, Andrew & Turner, Sarah, 2015. "Out of work and into school: Labor market policies and college enrollment during the Great Recession," Journal of Public Economics, Elsevier, vol. 124(C), pages 63-73.
    32. Nicola Bianchi & Michela Giorcelli, 2022. "The Dynamics and Spillovers of Management Interventions: Evidence from the Training within Industry Program," Journal of Political Economy, University of Chicago Press, vol. 130(6), pages 1630-1675.
    33. Kim, Donghyuk, 2023. "Economic spillovers and political payoffs in government competition for firms: Evidence from the Kansas City Border War," Journal of Public Economics, Elsevier, vol. 224(C).
    34. Freedman, Matthew, 2017. "Persistence in industrial policy impacts: Evidence from Depression-era Mississippi," Journal of Urban Economics, Elsevier, vol. 102(C), pages 34-51.
    35. Maryann P. Feldman & Johanna L. Francis, 2003. "Fortune Favours the Prepared Region: The Case of Entrepreneurship and the Capitol Region Biotechnology Cluster," European Planning Studies, Taylor & Francis Journals, vol. 11(7), pages 765-788, October.
    36. Naomi Hausman, 2022. "University Innovation and Local Economic Growth," The Review of Economics and Statistics, MIT Press, vol. 104(4), pages 718-735, October.
    37. Maryann Feldman & Nichola Lowe, 2018. "Policy and collective action in place," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 11(2), pages 335-351.
    38. Ganz, Marshall Louis & Skocpol, Theda & Munson, Ziad, 2000. "A Nation of Organizers: The Institutional Origins of Civic Voluntarism in the United States," Scholarly Articles 12641806, Harvard Kennedy School of Government.
    39. Nicholas A. Phelps & Andrew M. Wood, 2023. "Market maker? The Fantus Company and the making of a market for location in the United States," Business History, Taylor & Francis Journals, vol. 65(6), pages 1029-1047, August.
    40. Andrew Foote & Michel Grosz, 2020. "The Effect of Local Labor Market Downturns on Postsecondary Enrollment and Program Choice," Education Finance and Policy, MIT Press, vol. 15(4), pages 593-622, Fall.
    41. Michael J. Andrews, 2023. "How Do Institutions of Higher Education Affect Local Invention? Evidence from the Establishment of US Colleges," American Economic Journal: Economic Policy, American Economic Association, vol. 15(2), pages 1-41, May.
    42. Howard, Greg & Weinstein, Russell, 2022. ""Workhorses of Opportunity": Regional Universities Increase Local Social Mobility," IZA Discussion Papers 15622, Institute of Labor Economics (IZA).
    43. Riley K. Acton, 2021. "Community College Program Choices in the Wake of Local Job Losses," Journal of Labor Economics, University of Chicago Press, vol. 39(4), pages 1129-1154.
    Full references (including those not matched with items on IDEAS)

    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. Luisa Gagliardi,, "undated". "The World’s Rust Belts: The Heterogeneous Effects of Deindustrialization on 1,993 Cities in Six Countries," RF Berlin - CReAM Discussion Paper Series 2317, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    2. Luisa Gagliardi & Enrico Moretti & Michel Serafinelli, 2023. "The World’s Rust Belts: The Heterogeneous Effects of Deindustrialization on 1,993 Cities in Six Countries," NBER Working Papers 31948, National Bureau of Economic Research, Inc.
    3. Hanson, Gordon H. & Moretti, Enrico, 2025. "Where Have All the Good Jobs Gone? Changes in the Geography of Work in the U.S., 1980-2021," SocArXiv z6qkn_v1, Center for Open Science.
    4. Cameron LAPOINT & Shogo SAKABE, 2021. "Place-Based Policies and the Geography of Corporate Investment," Discussion papers 21059, Research Institute of Economy, Trade and Industry (RIETI).
    5. Andrew Hanson & Shawn Rohlin, 2024. "Local employment multipliers for large publicly subsidized firms: Evidence from a synthetic control approach," Journal of Regional Science, Wiley Blackwell, vol. 64(2), pages 491-526, March.
    6. Freedman, Matthew & Khanna, Shantanu & Neumark, David, 2023. "Combining rules and discretion in economic development policy: Evidence on the impacts of the California Competes Tax Credit," Journal of Public Economics, Elsevier, vol. 217(C).
    7. Lerche, Adrian, 2022. "Investment Tax Credits and the Response of Firms," IZA Discussion Papers 15668, Institute of Labor Economics (IZA).
    8. Federico Cingano & Filippo Palomba & Paolo Pinotti & Enrico Rettore, 2022. "Making Subsidies Work: Rules vs. Discretion," CESifo Working Paper Series 9560, CESifo.
    9. Enghin Atalay & Ali Hortacsu & Mustafa Runyun & Chad Syverson & Mehmet Fatih Ulu, 2023. "Micro- and Macroeconomic Impacts of a Place-Based Industrial Policy," Working Papers 23-12, Federal Reserve Bank of Philadelphia.
    10. Adam Scavette, 2024. "Aerospace Place-Based Policy: The Impact of Boeing on South Carolina's Aerospace Industry," Economic Development Quarterly, , vol. 38(4), pages 302-315, November.
    11. Aaron Chatterji & Edward Glaeser & William Kerr, 2014. "Clusters of Entrepreneurship and Innovation," Innovation Policy and the Economy, University of Chicago Press, vol. 14(1), pages 129-166.
    12. Gathmann, Christina & Helm, Ines & Schönberg, Uta, 2014. "Spillover Effects in Local Labor Markets: Evidence from Mass Layoffs," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100378, Verein für Socialpolitik / German Economic Association.
    13. Timothy J. Bartik, 2020. "Targeting Jobs Toward The People Who Need Them," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(3), pages 854-857, June.
    14. Ricardo Dahis & Christiane Szerman, 2023. "Decentralizing Development: Evidence from Government Splits," Monash Economics Working Papers 2023-18, Monash University, Department of Economics.
    15. Ku, Hyejin & Schönberg, Uta & Schreiner, Ragnhild C., 2020. "Do place-based tax incentives create jobs?," Journal of Public Economics, Elsevier, vol. 191(C).
    16. Stephen J. Redding & Esteban Rossi-Hansberg, 2017. "Quantitative Spatial Economics," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 21-58, September.
    17. Akira, Yamaguchi, 2024. "The impact of news shock of the openings or expansions of large-scale semiconductor plants on local labour market in Japan," Japan and the World Economy, Elsevier, vol. 72(C).
    18. Sebastian Siegloch & Nils Wehrhöfer & Tobias Etzel, 2022. "Spillover, Efficiency and Equity Effects of Regional Firm Subsidies," ECONtribute Discussion Papers Series 210, University of Bonn and University of Cologne, Germany.
    19. Melinda Fremerey & Andreas Lichter & Max Löffler, 2022. "Fiscal and Economic Effects of Local Austerity," CESifo Working Paper Series 9800, CESifo.
    20. Andrew Hanson, 2021. "Taxes and Economic Development: An Update on the State of the Economics Literature," Economic Development Quarterly, , vol. 35(3), pages 232-253, August.

    More about this item

    JEL classification:

    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:nbr:nberwo:33511. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    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.