IDEAS home Printed from https://ideas.repec.org/p/upj/weupjo/03-89.html
   My bibliography  Save this paper

Evaluating the Impacts of Local Economic Development Policies On Local Economic Outcomes: What Has Been Done and What is Doable?

Author

Listed:

Abstract

This paper argues that more rigorous evaluations of local economic development policies are feasible. Programs that aid selected small firms can be rigorously evaluated using an experimental approach, without excluding firms from assistance, by randomly assigning some firms to receive more intense marketing efforts by the program. Programs that aid distressed local areas can be rigorously evaluated by random assignment of the program among eligible distressed areas. If an experiment cannot be done, a variety of statistical approaches can be used to compare firms or areas that use the program with comparison groups of firms or areas that do not use the program. These statistical analyses should be supplemented with surveys and focus groups with businesses that use the program, which give some insight into why the program works or doesn't work. Evaluations should go beyond the effects of programs on business growth to effects on local fiscal health and the earnings of the unemployed. Evaluations using rigorous approaches suggest that programs providing information services to small manufacturers are frequently effective. Programs targeting distressed areas are ineffective unless great resources are used over a lengthy period.

Suggested Citation

  • Timothy J. Bartik, 2002. "Evaluating the Impacts of Local Economic Development Policies On Local Economic Outcomes: What Has Been Done and What is Doable?," Upjohn Working Papers 03-89, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:03-89
    Note: A revised version of this paper appears in Evaluating Local Economic and Employment Development: How to Assess What Works among Programmes and Policies. 2004. Paris: OECD.
    as

    Download full text from publisher

    File URL: http://research.upjohn.org/cgi/viewcontent.cgi?article=1106&context=up_workingpapers
    Download Restriction: This material is copyrighted. Permission is required to reproduce any or all parts.
    ---><---

    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. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
    2. Petra E. Todd & Jeffrey A. Smith, 2001. "Reconciling Conflicting Evidence on the Performance of Propensity-Score Matching Methods," American Economic Review, American Economic Association, vol. 91(2), pages 112-118, May.
    3. Murnane, Richard J & Newstead, Stuart & Olsen, Randall J, 1985. "Comparing Public and Private Schools: The Puzzling Role of Selectivity Bias," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 23-35, January.
    4. Edward Vytlacil & James J. Heckman, 2001. "Policy-Relevant Treatment Effects," American Economic Review, American Economic Association, vol. 91(2), pages 107-111, May.
    5. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    6. Timothy J. Bartik & Richard D. Bingham, 1997. "Can Economic Development Programs be Evaluated?," Book chapters authored by Upjohn Institute researchers, in: Richard D. Bingham & Robert Mier (ed.),Dilemmas of Urban Economic Development, pages 246-290, W.E. Upjohn Institute for Employment Research.
    7. Timothy J. Bartik & Peter K. Eisinger & George A. Erickcek, 2003. "Economic Development Policy in Michigan," Book chapters authored by Upjohn Institute researchers, in: Charles L. Ballard & Paul N. courant & Douglas C. Drake & Ronald C. Fisher & Elisabeth R. Gerber (ed.),Michigan at the Millennium: A Benchmark and Analysis of Its Fiscal and Economic Structure, pages 279-297, W.E. Upjohn Institute for Employment Research.
    8. Charles E. McLure, Jr. & Walter Hellerstein, 2002. "Does Sales-only Apportionment of Corporate Income Violate the GATT?," NBER Working Papers 9060, National Bureau of Economic Research, Inc.
    9. Timothy J. Bartik, 1999. "The Market Failure Approach to Regional Economic Development Policy," Book chapters authored by Upjohn Institute researchers, in: John P. Blair & Laura A. Reese (ed.),Readings in Urban Economics: Issues and Public Policy, pages 14-24, W.E. Upjohn Institute for Employment Research.
    10. Leslie E. Papke, 1993. "What Do We Know about Enterprise Zones?," NBER Chapters, in: Tax Policy and the Economy, Volume 7, pages 37-72, National Bureau of Economic Research, Inc.
    11. Ronald S. Jarmin, 1999. "Evaluating the impact of manufacturing extension on productivity growth," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(1), pages 99-119.
    12. Peter S. Fisher & Alan H. Peters, 1998. "Industrial Incentives: Competition among American Cities and States," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ii, December.
    13. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-161, April.
    14. Hines, James R, Jr, 1996. "Altered States: Taxes and the Location of Foreign Direct Investment in America," American Economic Review, American Economic Association, vol. 86(5), pages 1076-1094, December.
    15. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    16. William H. Oakland & William A. Testa, 2000. "The Benefit Principle as a Preferred Approach to Taxing Business in the Midwest," Economic Development Quarterly, , vol. 14(2), pages 154-164, May.
    17. repec:fth:prinin:455 is not listed on IDEAS
    18. 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, December.
    19. Michael Wasylenko, 1997. "Taxation and economic development: the state of the economic literature," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 37-52.
    20. Robert T Greenbaum & John B Engberg, 1998. "The Impact Of State Urban Enterprise Zones On Business Outcomes," Working Papers 98-20, Center for Economic Studies, U.S. Census Bureau.
    21. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
    22. Harry J. Holzer & Richard N. Block & Marcus Cheatham & Jack H. Knott, 1993. "Are Training Subsidies for Firms Effective? The Michigan Experience," ILR Review, Cornell University, ILR School, vol. 46(4), pages 625-636, July.
    23. Kenneth E. Poole & George A. Erickcek & Donalad T. Iannone & Nancy McCrea & Pofen Lin Salem, 1999. "Evaluating Business Development Incentives," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number gaw1999, December.
    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. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers 03-91, W.E. Upjohn Institute for Employment Research.
    2. Daniele Bondonio, 2003. "Do Tax Incentives Affect Local Economic Growth? What Mean Impacts Miss in the Analysis of Enterprise Zone Policies," Working Papers 03-17, Center for Economic Studies, U.S. Census Bureau.
    3. Ravallion, Martin, 2008. "Evaluating Anti-Poverty Programs," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 59, pages 3787-3846, Elsevier.
    4. Timothy J. Bartik & George A. Erickcek, 2012. "Simulating the Effects of Michigan's MEGA Tax Credit Program on Job Creation and Fiscal Benefits," Upjohn Working Papers 12-185, W.E. Upjohn Institute for Employment Research.
    5. Michael Lechner, 2002. "Mikroökonometrische Evaluation arbeitsmarktpolitischer Massnahmen," University of St. Gallen Department of Economics working paper series 2002 2002-20, Department of Economics, University of St. Gallen.
    6. Shin-Yi Chou & Jin-Tan Liu & James Hammitt, 2006. "Households’ precautionary behaviors—the effects of the introduction of National Health Insurance in Taiwan," Review of Economics of the Household, Springer, vol. 4(4), pages 395-421, December.
    7. Rockers, Peter C. & Røttingen, John-Arne & Shemilt, Ian & Tugwell, Peter & Bärnighausen, Till, 2015. "Inclusion of quasi-experimental studies in systematic reviews of health systems research," Health Policy, Elsevier, vol. 119(4), pages 511-521.
    8. Tenn, Steven & Herman, Douglas A. & Wendling, Brett, 2010. "The role of education in the production of health: An empirical analysis of smoking behavior," Journal of Health Economics, Elsevier, vol. 29(3), pages 404-417, May.
    9. James J. Heckman, 2005. "Micro Data, Heterogeneity and the Evaluation of Public Policy Part 2," The American Economist, Sage Publications, vol. 49(1), pages 16-44, March.
    10. Timothy J. Bartik, 2012. "The Future of State and Local Economic Development Policy: What Research Is Needed," Growth and Change, Wiley Blackwell, vol. 43(4), pages 545-562, December.
    11. 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.
    12. Shin-Yi Chou & Jin-Tan Liu & James K. Hammitt, 2002. "Health Insurance and Households' Precautionary Behaviors - An Unusual Natural Experiment," NBER Working Papers 9394, National Bureau of Economic Research, Inc.
    13. KAMKOUM, Arnaud Cedric, 2023. "The Federal Reserve’s Response to the Global Financial Crisis and its Effects: An Interrupted Time-Series Analysis of the Impact of its Quantitative Easing Programs," Thesis Commons d7pvg, Center for Open Science.
    14. Yiming He & Thomas M. Fullerton, 2020. "The economic analysis of instrument variables estimation in dynamic optimal models with an application to the water consumption," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(9), pages 413-423.
    15. Ellis, Jimmy R. & Gershenson, Seth, 2016. "LATE for the Meeting: Gender, Peer Advising, and College Success," IZA Discussion Papers 9956, Institute of Labor Economics (IZA).
    16. Kumse, Kaittisak & Suzuki, Nobuhiro & Sato, Takeshi & Demont, Matty, 2021. "The spillover effect of direct competition between marketing cooperatives and private intermediaries: Evidence from the Thai rice value chain," Food Policy, Elsevier, vol. 101(C).
    17. Timothy F. Harris & Aaron Yelowitz, 2018. "Life Insurance Holdings And Well‐Being Of Surviving Spouses," Contemporary Economic Policy, Western Economic Association International, vol. 36(3), pages 526-538, July.
    18. Alan de Brauw & Valerie Mueller & Tassew Woldehanna, 2018. "Does Internal Migration Improve Overall Well-Being in Ethiopia?," Journal of African Economies, Centre for the Study of African Economies, vol. 27(3), pages 367-367.
    19. Lin, Wanchuan & Sloan, Frank, 2015. "Risk perceptions and smoking decisions of adult Chinese men," Journal of Health Economics, Elsevier, vol. 39(C), pages 60-73.
    20. Mont, Daniel & Nguyen, Cuong, 2013. "Does Parental Disability Matter to Child Education? Evidence from Vietnam," World Development, Elsevier, vol. 48(C), pages 88-107.

    More about this item

    Keywords

    evaluation; local; regional; economic; development; Bartik; Upjohn;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - 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:upj:weupjo:03-89. 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/upjohus.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.