The ‘Trade-off’ between Spatial Equity and Economic Efficiency Revisited: Evidence from the US States
AbstractThe principle aims of regional policy can be encapsulated in terms of ‘spatial equity’ and ‘economic efficiency’. Establishing the relation between these two aims is of fundamental importance. Conventionally, however, it is assumed that there is a conflict or a ‘trade-off’ between them. In this paper, a hopeful view, i.e. that the two aims are complementary rather than competitive, is put forward. The validity of this view is examined empirically using data for the US States covering the period 1972-2005. The obtained results map an instructive framework for regional policy where the scope for reducing regional inequalities is not incompatible with improvements in economic efficiency.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 24372.
Date of creation: 11 Aug 2010
Date of revision:
regional growth; regional policy; spatial equity; trade-off;
Find related papers by JEL classification:
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-21 (All new papers)
- NEP-GEO-2010-08-21 (Economic Geography)
- NEP-URE-2010-08-21 (Urban & Real Estate Economics)
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