Local employment, poverty, and property value effects of geographically-targeted tax incentives: An instrumental variables approach

B-Tier
Journal: Regional Science and Urban Economics
Year: 2009
Volume: 39
Issue: 6
Pages: 721-731

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The federal Empowerment Zone (EZ) program is a set of tax incentives targeted to areas of select cities. I estimate the effect of the EZ program on employment, poverty, and property values by comparing areas that received an EZ to areas that applied (and qualified), but were rejected. Because of endogeneity concerns, I use political representation to instrument for EZ designation. OLS results show a positive and statistically significant effect of the program on employment and poverty. IV estimates suggest the program had no effect on employment and poverty, and instead had a large statistically significant effect on property values.

Technical Details

RePEc Handle
repec:eee:regeco:v:39:y:2009:i:6:p:721-731
Journal Field
Urban
Author Count
1
Added to Database
2026-01-25