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Redistribution policy: A European model

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  • Alessandra Casella

    ()
    (Columbia University - School of International & Public Affairs)

Abstract

Following the rationale for regional redistribution programs described in the official documents of the European Union, this paper studies a very simple multi-country model built around two regions: a core and a periphery. Technological spill-overs link firms' productivity in each of the two region, and each country's territory falls partly in the core and partly in the periphery, but the exact shares vary across countries. We find that, in line with the EU view, the efficient regional allocation requires both national and international transfers. If migration is fully free across all borders, then optimal redistribution policy results from countries'¡uncoordinated policies, obviating the need for a central agency. But if countries have the option of setting even imperfect border barriers, then efficiency is likely to require coordination on both barriers and international transfers (both of which will be set optimally at positive levels). The need for coordination increases as the Union increases in size.

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Bibliographic Info

Paper provided by Columbia University, Department of Economics in its series Discussion Papers with number 0203-06.

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Length: 37 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:clu:wpaper:0203-06

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References

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Cited by:
  1. Calin Arcalean & Gerhard Glomm & Ioana Cosmina Schiopu, 2012. "Growth Effects of Spatial Redistribution Policies," CESifo Working Paper Series 3728, CESifo Group Munich.
  2. Norbert Berthold & Michael Neumann, 2005. "Zahlt Deutschland drauf? - Was die Neue Ökonomische Geographie der deutschen Politik für die Verhandlungen um den europäischen Etat mit auf den Weg geben kann," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 58(10), pages 16-22, 05.
  3. Chetan Ghate & Gerhard Glomm & Jialu Liu, 2012. "Sectoral infrastructure investment in an unbalanced growing economy: The Case of India," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 12-07, Indian Statistical Institute, New Delhi, India.
  4. Achim Kemmerling, 2003. "Regional Input on the Social Dimension of Ezoneplus: Belgium, The Netherlands, France, Austria, and Germany," Eastward Enlargement of the Euro-zone Working Papers wp13c, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Mar 2003.
  5. Malchow-Møller, Nikolaj & Munch, Jakob Roland & Schroll, Sanne & Rose Skaksen, Jan, 2007. "Explaning Cross-Country Differences in Attitudes towards Immigration in the EU-15," Working Papers 05-2007, Copenhagen Business School, Department of Economics.
  6. Jesus Fernandez-Huertas Moraga, 2008. "A General Model of Bilateral Migration Agreements," Working Papers 360, Barcelona Graduate School of Economics.
  7. Hanns-Dieter Jacobsen et. al, 2004. "Economic, Political, Institutional as well as Social Risks and Opportunities of EMU Enlargement," Eastward Enlargement of the Euro-zone Working Papers wp22, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Jun 2004.
  8. Neumann, Michael & Berthold, Norbert, 2004. "Europäische Strukturpolitik - Gift für rückständige Regionen?," Wirtschaftswissenschaftliche Beiträge 74, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
  9. Ugo Fratesi, 2004. "Regional policy from a supra-regional perspective," ERSA conference papers ersa04p509, European Regional Science Association.
  10. Rahel Falk & Werner Hölzl & Hannes Leo, 2007. "On the Roles and Rationales of European STI Policies," WIFO Working Papers 299, WIFO.

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