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

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

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Blouri, Yashar and 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:

31 Aug 2020 15:52

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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