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Preliminary Results on the Effectiveness of State Enterprise Zones

Charles Swenson
In an effort to stimulate jobs and activity in economically depressed regions, many states designate them Enterprise Zones (EZs) and offer lucrative tax benefits for firms that locate in them. The six studies to date of the effectiveness of EZs (cited in Bandonio and Engberg 1990[should this be 1999, as in references?), however, have yielded disappointing results, finding only a slight increase in economic activity in the EZs as a result of the programs.