The application of micro-geographic economic analysis in urban policy evaluation

The paper investigates the broadening area of research utilizing micro-geographic economic analysis to conduct evaluations of area-based policies implemented at a micro-geographic level. It offers the first extensive, critical examination and synthesis of this subset of work including its theoretical foundations, key technical features, and applications for evaluation research. The paper begins by more formally defining the micro-geographic concept and examining the theoretical framework of micro-geographic policies. It then conducts an extensive review of the empirical micro-geographic evaluation literature with a focus on the findings and methodologies. The paper identifies three dominant methodological components (differencing estimates, clear counterfactual selection strategies, and clear methods for the treatment of geography) and proposes a more formalized micro-geographic evaluation framework. It concludes with a discussion of key lessons and new avenues of research.