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Regional Policy: An Alternative Approach

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  • Alexiadis, Stilianos

Abstract

The regional policy problem is often conceived as a trade-off between aggregate efficiency and interregional equity. A policy to allocate investment across regions frequently causes a contradiction in the aims of regional policy, in the sense that it might lead to high rates of aggregate growth accompanied with an unequal distribution of income across regions. On the other hand, a policy to reduce regional inequalities may in fact be inefficient to promote growth of the economy as a whole. It is argued further that under certain conditions the contradiction between aims can be avoided.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47063.

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Date of creation: 2013
Date of revision: 2013
Handle: RePEc:pra:mprapa:47063

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Keywords: Optimal Control Theory; Regional Disparities; Regional Policy;

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  1. Smith, Paul E, 1970. "Recent Approaches to Dynamic Stability in Macro-Economic Models," Public Finance = Finances publiques, , , vol. 25(1), pages 1-23.
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