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The regional effects of a place-based policy – Causal evidence from Germany

Matthias Brachert (), Eva Dettmann and Mirko Titze

Regional Science and Urban Economics, 2019, vol. 79, issue C

Abstract: The German government provides discretionary investment grants to structurally weak regions in order to reduce regional inequality. We use a regression discontinuity design that exploits an exogenous discrete jump in the probability of regional actors to receive investment grants to identify the causal effects of the policy. We find positive effects of the programme on district-level gross value-added and productivity growth, but no effects on employment and gross wage growth.

Keywords: Causal analysis; Place-based policy; Regression discontinuity design (search for similar items in EconPapers)
JEL-codes: Z0 A11 D61 H20 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:79:y:2019:i:c:s016604621830382x

DOI: 10.1016/j.regsciurbeco.2019.103483

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