| Article ID: | iaor19932086 |
| Country: | United States |
| Volume: | 5 |
| Start Page Number: | 477 |
| End Page Number: | 505 |
| Publication Date: | Mar 1993 |
| Journal: | Public Budgeting and Financial Management |
| Authors: | McDonald John F. |
| Keywords: | planning, finance & banking, economics, politics, government, law & law enforcement, statistics: regression |
Various state and local tax incentives are offered to business under the Illinois Enterprise Zone program, which has been in operation since 1983. The original intent of the program was to stimulate economic growth in distressed areas of the state. The results of this study show that the program has not increased total employment and earnings in these local economies, but that firms in the distribution sector (wholesale trade and transportation) have responded to the incentives. The distribution sector is characterized by appreciable growth over the period and by sizable investments in real estate capital.