Dawid, H. ; Harting, P. ; Neugart, Michael (2017)
Fiscal transfers and regional economic growth.
In: Review of International Economics, 26 (3)
doi: 10.1111/roie.12317
Article, Bibliographie
This is the latest version of this item.
Abstract
In the aftermath of the financial crisis, with periphery countries in the European Union falling even more behind the core countries economically, there have been quests for various kinds of fiscal policies in order to revert divergence. How these policies would unfold and perform comparatively is largely unknown. We analyze four such stylized policies in an agent-based macroeconomic model and study the economic mechanisms behind their relative success. Our main findings are that the core country sharing the debt burden of the periphery country has almost no effect on the growth dynamics of that region, fiscal transfers have a positive short- and long-run impact on per-capita consumption in the target region, and that technology-oriented firm subsidies have the strongest positive long-run impact on competitiveness of the periphery country at which they are targeted. The positive effect of the technology-oriented policy is reinforced if combined with household transfers.
| Item Type: | Article |
|---|---|
| Erschienen: | 2017 |
| Creators: | Dawid, H. ; Harting, P. ; Neugart, Michael |
| Type of entry: | Bibliographie |
| Title: | Fiscal transfers and regional economic growth |
| Language: | English |
| Date: | 2017 |
| Place of Publication: | Oxford |
| Publisher: | Wiley |
| Journal or Publication Title: | Review of International Economics |
| Volume of the journal: | 26 |
| Issue Number: | 3 |
| DOI: | 10.1111/roie.12317 |
| Corresponding Links: | |
| Abstract: | In the aftermath of the financial crisis, with periphery countries in the European Union falling even more behind the core countries economically, there have been quests for various kinds of fiscal policies in order to revert divergence. How these policies would unfold and perform comparatively is largely unknown. We analyze four such stylized policies in an agent-based macroeconomic model and study the economic mechanisms behind their relative success. Our main findings are that the core country sharing the debt burden of the periphery country has almost no effect on the growth dynamics of that region, fiscal transfers have a positive short- and long-run impact on per-capita consumption in the target region, and that technology-oriented firm subsidies have the strongest positive long-run impact on competitiveness of the periphery country at which they are targeted. The positive effect of the technology-oriented policy is reinforced if combined with household transfers. |
| Divisions: | 01 Department of Law and Economics 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > Fachgebiet Finanzwissenschaft und Wirtschaftspolitik |
| Date Deposited: | 16 Jan 2019 13:44 |
| Last Modified: | 18 Jul 2024 09:59 |
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Fiscal transfers and regional economic growth. (deposited 25 Jun 2024 13:37)
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