When regional policies fail: An evaluation of Indonesia’s Integrated Economic Development Zones
研究了印度尼西亚综合经济开发区项目，发现资本税减免并未刺激企业进入或提高产出，区域发展效果不显著，并构建空间模型探讨如何优化区域政策。
We study Indonesia’s Integrated Economic Development Zone (KAPET) program. Although firms in KAPET districts paid lower capital taxes , the program’s incentives neither stimulated entry nor increased output, and KAPET districts experienced similar development outcomes relative to non-treated districts. To investigate whether regional policies could be more optimally redesigned, we develop a quantitative spatial model where place-based capital tax cuts affect multiple sectors and impact a transfer system to finance local public goods . We find that capital incentives in KAPET areas would have been more welfare and growth enhancing if they had been accompanied by additional place-based improvements.