This paper provides new empirical evidence on the long-run efficiency of locally targeted tax incentives in revitalizing distressed areas. We focus on the first generation of the French "Enterprise Zone" (EZ) initiative, implemented in 1997 in continental France. This program provides tax...

In this paper, we investigate the use of interactive effect or linear factor models in regional policy evaluation. We contrast treatment effect estimates obtained by Bai (2009)'s least squares method with the popular difference in difference estimates as well as with estimates obtained using...