Blouri, Yashar; von Ehrlich, Maximilian (26 October 2017). On the optimal design of place-based policies: A structural evaluation of EU regional transfers (Discussion Papers 17-02). Bern: Department of Economics
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We quantify general equilibrium effects of place-based policies in a multiregion framework with 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 |
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Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Economics |
UniBE Contributor: |
Blouri, Yashar, v. Ehrlich, Maximilian |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
Series: |
Discussion Papers |
Publisher: |
Department of Economics |
Language: |
English |
Submitter: |
Lars Tschannen |
Date Deposited: |
31 Aug 2020 15:52 |
Last Modified: |
05 Dec 2022 15:40 |
JEL Classification: |
R10, R50, F10, F20, H20 |
BORIS DOI: |
10.7892/boris.145841 |
URI: |
https://boris.unibe.ch/id/eprint/145841 |
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