Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/204895
Authors: 
Blouri, Yashar
von Ehrlich, Maximilian
Year of Publication: 
2017
Series/Report no.: 
Discussion Papers No. 17-02
Abstract: 
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.
Subjects: 
economic geography
place-based policies
structural estimation
subsidies
public investments
European structural funds
JEL: 
R10
R50
F10
F20
H20
Document Type: 
Working Paper

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