Even though place-based policies involve large transfers toward low-income neighborhoods, they may also produce territorial stigmatization by spotlighting the targeted areas. This paper appeals to the quasi-experimental discontinuity in a French reform that redrew the zoning map of subsidized...

McCallum (1995) shows in an influential contribution that, even when controlling for the impact of bilateral distance and region size, borders sharply reduce trade volumes between countries. We use in this paper data on bilateral trade flows between 94 French regions, for 10 industries and 2...