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Economics

Matthew Freedman

Business incentives

Publication Year

Articles 1 - 2 of 2

Full-Text Articles in Urban Studies and Planning

Targeted Business Incentives And Local Labor Markets, Matthew Freedman Dec 2012

Targeted Business Incentives And Local Labor Markets, Matthew Freedman

Matthew Freedman

This paper uses a regression discontinuity design to examine the effects of geographically targeted business incentives on local labor markets. Unlike elsewhere in the U.S., enterprise zone (EZ) designations in Texas are determined in part by a cutoff rule based on census block group poverty rates. Exploiting this discontinuity as a source of quasi-experimental variation in investment and hiring incentives across areas, I find that EZ designation has a positive effect on resident employment, increasing opportunities mainly in lower-paying industries. While business sitings and expansions spurred by the program are more geographically diffuse, EZ designation is associated with increases ...


Teaching New Markets Old Tricks: The Effects Of Subsidized Investment On Low-Income Neighborhoods, Matthew Freedman Nov 2012

Teaching New Markets Old Tricks: The Effects Of Subsidized Investment On Low-Income Neighborhoods, Matthew Freedman

Matthew Freedman

This paper examines the effects of investment subsidized by the federal government’s New Markets Tax Credit (NMTC) program, which provides tax incentives to encourage private investment in low-income neighborhoods. I identify the impacts of the program by taking advantage of a discontinuity in the rule determining the eligibility of census tracts for NMTC-subsidized investment. Using this discontinuity as a source of quasi-experimental variation in commercial development across tracts, I find that subsidized investment has modest positive effects on neighborhood conditions in low-income communities. Though spillovers appear to be small and crowd out incomplete, the results suggest that some of ...