TAX POLICY AND URBAN-DEVELOPMENT - EVIDENCE FROM THE INDIANA ENTERPRISE ZONE PROGRAM

• 成果类型: Article
• 署名作者: PAPKE, LE
• 署名单位: National Bureau of Economic Research
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/0047-2727(94)90069-8
• 发表日期: 1994
• 页码: 37-49

摘要

This paper analyzes the effect of the Indiana enterprise zone (EZ) program on local employment and investment using a panel of local taxing jurisdictions. As in other EZ programs, Indiana's incentives favor capital relative to labor, but the target of the capital incentive is unusual - the stock of inventories. Using various estimation methods, I estimate that zone designation initially reduces the value of depreciable personal property by about 13 percent, but also reduces unemployment claims in the zone and surrounding community by 19 percent. The value of inventories in Indiana zones is 8 percent higher than it would be without the program.