The Alabama Enterprise Zone Act established 27 zones across the state. The act provides incentives to business firms that locate within an approved zone in an effort to attract desperately needed jobs. Zone status was purported to be based on economic need as measured by five variables. In this article, the selection process is closely examined. The authors find that the selection criteria were frequently ignored in favor of political concerns. The results suggest that a policy designed to help needy individuals in the state was convoluted by the political process.
Get full access to this article
View all access options for this article.
References
1.
Anderson, G. M., and R. D. Tollison. 1991. Congressional influence and patterns of New Deal spending, 1933-1939. Journal of Law and Economics34 (April): 161-175.
2.
Code of Alabama, Alabama Enterprise Zone Act, Chapter 305-5-3, State of Alabama, 1987.
3.
Couch, J. F., K. Atkinson, andW. F. Shughart. 1992. Ethics laws and the outside earning of politicians: The case of Alabama’s “legislator-educators.” Public Choice73:135-145.
4.
Couch, J. F., L. Smith, and K. Atkinson. 1997. The impact of enterprise zones on job creation in Mississippi. U.S. Sites and Development, January, 48-56.
5.
Erickson, R. A., and S. W. Friedman. 1989. Enterprise zones: An evaluation of state government policies. Washington, DC: U.S. Department of Commerce.
6.
Faith, R. L., D. R. Leavens, and R. D. Tollison. 1982. Antitrust pork barrel. Journal of Law and Economics15:329-342.
7.
Guskind, R. 1990. Enterprise zones: Do they work? Journal of Housing January/February: 47-54.
8.
Maloney, M. T., R. E. McCormick, and R. D. Tollison. 1984. Economic regulation, competitive governments and specialized resources. Journal of Law and Economics27:329-338.
9.
Minutes, Alabama Enterprise Zone Advisory Council meeting. 1988. Alabama Department of Economic and Community Affairs, Montgomery, January 4. (Provided by William M. Babbington)
10.
Neter, J., M. Kutner, C. Nachtsheim, andW. Wasserman. 1996. Applied linear regression models. Chicago: Irwin.
11.
Peltzman, S. 1971. Pricing in public and private enterprises: Electric utilities in the United States. Journal of Law and Economics14 (April): 109-147.
12.
Posner, R. A. 1969. The Federal Trade Commission. University of Chicago Law Review37:48-89.
13.
Rubin, B. M., and M. G. Wilder. 1989. Urban enterprise zones: Employment impacts and fiscal incentives. Journal of the American Planning Association55 (4): 418.
14.
Stigler, G. J. 1971. The theory of economic regulation. Bell Journal of Economics2 (Spring): 3-21.
15.
Stigler, G. J. 1975. Supplementary note on economic theories of regulation. In The citizen and the state: Essays on regulation, 137-141. Chicago: University of Chicago Press.
