Academic Paper on State Incentives

Selecting the Right Site: Where do States Locate Place-based Economic Development Programs?
By Robert T. Greenbaum, The Ohio State University

Abstract

During the early 1980s, U.S. states started targeting their scarce economic development resources to their most distressed areas with enterprise zone programs. This paper examines where incentives were targeted in ten states that implemented a limited number of programs. By examining the relative distress of zone areas prior to designation, the paper finds that factors such as population density, the local housing market, and demographic factors help distinguish
between distressed areas that received zones and those that did not. In addition, the paper finds that some of the characteristics of neighboring areas can help to predict zone location.

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