On the optimal design of place-based policies: A structural evaluation of EU regional transfers

Blouri, Yashar; von Ehrlich, Maximilian (October 2017). On the optimal design of place-based policies: A structural evaluation of EU regional transfers (CRED Research Paper 17). Bern: CRED - Center for Regional Economic Development

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We quantify general equilibrium effects of place-based policies in a multi-region framework with population mobility, trade and agglomeration economies. Using detailed data on EU transfers, we infer the local effects of different transfer types on productivity, income and transportation cost. Based on these estimates and the general equilibrium model we derive the spatial distribution of economic activity and the resulting aggregate welfare effects if (i) no transfers were paid and taxes set to zero, (ii) transfers were distributed uniformly, (iii) transfers were welfare-optimally distributed. Characterizing the optimal distributions, we reveal complementarities between transfer types and between transfers and local endowments.

Item Type:

Working Paper

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics
03 Faculty of Business, Economics and Social Sciences > Department of Economics > Institute of Economics > Economic Policy and Regional Economics
03 Faculty of Business, Economics and Social Sciences > Department of Economics > Institute of Economics
11 Centers of Competence > Center for Regional Economic Development (CRED)

UniBE Contributor:

Blouri, Yashar and v. Ehrlich, Maximilian

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

Series:

CRED Research Paper

Publisher:

CRED - Center for Regional Economic Development

Language:

English

Submitter:

Melanie Moser

Date Deposited:

15 Apr 2020 11:46

Last Modified:

15 Apr 2020 11:46

Uncontrolled Keywords:

economic geography; place-based policies; structural estimation; subsidies; public investments; European structural funds

JEL Classification:

R10, R50, F10, F20, H20

BORIS DOI:

10.7892/boris.142284

URI:

https://boris.unibe.ch/id/eprint/142284

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