DO LOCATION-BASED TAX INCENTIVES ATTRACT NEW BUSINESS ESTABLISHMENTS?*
利用联邦授权区的自然实验，研究发现工资税收抵免每千家企业约吸引2.2家新企业，零售和服务业增长显著，但其他行业有所下降。
ABSTRACT This paper examines how offering tax incentives in a local area affects the entry of new business establishments. We use the federal Empowerment Zone (EZ) program as a natural experiment to test this relationship. Using instrumental variables estimation, we find that the EZ wage tax credit is responsible for attracting about 2.2 new establishments per 1,000 existing establishments, or a total of 20 new establishments in EZ areas. New establishment growth is strongest in the retail (about 40 new establishments) and service (about five new establishments) sectors, and offset by declines or slower growth in other industries.