The Economics of Place-Based Policies

After decades of skepticism about place-based policies, recent initiatives including Opportunity Zones and some elements of the Inflation Reduction Act signal renewed policy interest in targeting economically distressed areas. The 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. 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 American Indian Reservations.
The volume is not limited to empirical policy impact evaluations; it takes a broader 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 comparison of the two? This book 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.