Regional policy: What is the most efficient instrument?*

Hélène Laurent, Michel Mignolet () and Olivier Meunier

Papers in Regional Science, 2009, vol. 88, issue 3, 491-507

Abstract: Abstract Whatever the reasons at work – differences in locational endowments and/or externalities – a unit of capital is expected to be diversely productive according to the region where it is installed. This article determines which and the extent to which a regional policy could be implemented in order to make up for a productivity handicap. The model allows for comparing the efficiency of a productivity‐enhancing instrument (a publicly provided input) with that of instruments that affect capital cost (a lower corporate tax rate, an investment tax credit, or a capital subsidy). The approach is illustrated in the contemporaneous context of France. Resumen Cualquiera que sean las razones subyacentes – diferencias en dotaciones locales y/o externalidades – se espera que una unidad de capital sea diversamente productiva de acuerdo con la región en que se instale. Este artículo determina cuáles políticas regionales y hasta dónde podrían implementarse para compensar un hándicap de productividad. El modelo permite comparar la eficiencia de un instrumento de mejora de la productividad (insumo aportado públicamente) con la de instrumentos que afecten al costo de capital (una tasa fiscal corporativa más baja, deducciones imponibles por inversión, o subsidios al capital). El enfoque se ilustra dentro del contexto actual de Francia.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.1111/j.1435-5957.2008.00214.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:presci:v:88:y:2009:i:3:p:491-507

Access Statistics for this article

Papers in Regional Science is currently edited by Jouke van Dijk

More articles in Papers in Regional Science from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().