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Peters and Fisher evaluate 75 EZs located in 13 states to gain an understanding of the overall effectiveness of state enterprise zones. Faced with a paucity of data on EZs that could be used in standard economic analysis, the authors employ a hypothetical firm model in which they apply various EZ and non-EZ incentives to financial statements created for a set of "e;typical"e; firms. Observing the impacts of both types of incentives on firms' financial statements allow Peters and Fisher to predict the firms' resulting behavior. Between these findings and the data accumulated from actual EZs, they are able to offer insights on seven key policy issues.
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