Economics of Place-Based Policies

A wide-ranging collection of research examining the intricate economics of place-based policies.

After decades of skepticism about place-based policies, recent initiatives such as Opportunity Zones and elements of the Inflation Reduction Act signal renewed policy interest in targeting economically distressed areas. This volume surveys empirical findings from the US and Europe on the effectiveness of these policies, explores new theoretical rationales for geographic targeting, and examines the institutional contexts that shape policy design and implementation. The contributors evaluate major place-based initiatives and consider nontraditional approaches to supporting regional economies, including large-scale industrial interventions, public employment reallocation, and economic development on Native American reservations.

This collection is not limited to empirical policy impact evaluations as it takes a broader-ranging perspective. The contributors present evaluation evidence while also emphasizing the features, implementation processes, and institutional settings that shape policy effectiveness. They address critical questions such as: What new insights from economic theory can inform the design of place-based policies? What lessons from past policies are reflected—or ignored—in current approaches? How does US policymaking compare with European practices, and what takeaways can be derived from the comparison of the two?

The Economics of Place-Based Policies provides policymakers with evidence-based guidance on the design of effective interventions while offering researchers a comprehensive foundation for future study of how public policy can address geographic economic disparities.

Cecile Gaubert is associate professor of economics at the University of California, Berkeley. She is also a research associate of the NBER and a research affiliate of the Centre for Economic Policy Research. Gordon H. Hanson is the Peter Wertheim Professor in Urban Policy and academic dean for strategy and engagement at the Kennedy School of Government at Harvard University, and research associate of the NBER. David Neumark is distinguished professor of economics at the University of California, Irvine, a visiting fellow at the Hoover Institution, and a research associate of the NBER.