A comparative evaluation of spacially targeted economic revitalization programs in the European Union and the United States

Daniele Bondonio () and Robert T. Greenbaum ()

ICER Working Papers from ICER - International Centre for Economic Research

Abstract: This paper compares and contrasts the United States federal Empowerment Zone and European Union Objective 2 programs that geographically target economic revitalization incentives. Since 1989, both programs have designated predominately industrial or urban areas as being distressed and worthy of government incentives in three separate rounds. The paper uses a probit econometric model to comparatively evaluate the characteristics of the areas that were targeted. The paper finds that while the programs were fashioned for different reasons and thus had different goals, the programs on both continents initially targeted very distressed areas. However, consistent with the fears of critics of spatial targeting, subsequent rounds of designation greatly expanded the programs, and in most cases, lead to less precise targeting.

JEL-codes: C23 O1 R5 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2003-01
New Economics Papers: this item is included in nep-eec and nep-geo
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:icr:wpicer:03-2003

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