Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience
Journal article: This paper shows that urban geography matters to the effectiveness of place-based policies, using the French enterprise zone program as a case study. Whereas this program created more jobs in spatially integrated neighborhoods, its impact on local wages was only visible in the more isolated ones. In addition, a focus on the average impact of the program would lead to the conclusion that it mostly succeeded in displacing preexisting firms, but a lower level of spatial isolation was a clear determinant of the decision to create new firms from scratch.
Author(s)
Anthony Briant, Miren Lafourcade, Benoît Schmutz
Journal
- American Economic Journal: Economic Policy
Date of publication
- 2015
Keywords JEL
Keywords
- Business Taxes
Pages
- 88-124
URL of the HAL notice
Version
- 1
Volume
- 7