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Naomi FELDMAN (Hebrew University of Jerusalem) – “A first look at the impact of opportunity zones on commercial investment and economic activity “
Time: 3:00 pm – 4:15 pm
Date: 5th of October 2021
Room : Visio
Naomi FELDMAN (Hebrew University of Jérusalem) – “A first look at the impact of opportunity zones on commercial investment and economic activity”
Abstract: A provision of the Tax Cuts and Jobs Act of 2017 offered tax incentives for investing in certain low income areas in the United States called Opportunity Zones (OZs). The goal of this provision was to spur private investment in OZs in order to improve the economic outcomes of their residents. This paper evaluates the impact of OZs during their first two years of implementation, using both difference in differences and a regression discontinuity design that address the fact that OZs may have differed from non-selected areas on unobserved characteristics. Using data on the universe of all significant commercial investments in the United States, we find that OZ designation led to little or no increase in the total amount of investment or the number of investments in OZs. These findings are supported by additional data from Mastercard that also show no evidence of increased business activity nor consumer spending. Overall, our findings suggest that the impact of OZs on economic improvement in their first two years has been limited. Joint with Kevin Corinth.
Benoît SCHMUTZ (Pôle d’économie du CREST)
Anthony STRITTMATTER (Pôle d’économie du CREST)