 Fiscal transfers and regional economic growthH. Dawid, Philipp Harting and Michael Neugart Review of International Economics, 2018, vol. 26, issue 3, 651-671 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. Date: 2018 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:reviec:v:26:y:2018:i:3:p:651-671 Ordering information: This journal article can be ordered from Access Statistics for this article Review of International Economics is currently edited by E. Kwan Choi More articles in Review of International Economics from Wiley Blackwell |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.