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Macroeconometric modelling for evaluationg the policy impact on growth in dualistic countries: the case of Southern Italian Regions

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Author Info
Stefania P. S. Rossi ()
Guido Pellegrini ()
Ornella Tarola ()
Abstract

Can policies accelerate the convergence path of dualistic economic growth in a single country, offsetting market failures and making growth transmission channels more efficient? A structural dynamic econometric model, has been set up in order to account for these changes. Three are the main sources of growth playing a role in this context: the “neighbourhood” effect, the interaction between the economic environment and the agents' expectations, and the policy impact on economic take-off. The evidence shows that policies strongly boost economicgrowth of a local area and narrow the gap between the regions of a dual economy.

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Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0607.

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Date of creation: Jul 2006
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Handle: RePEc:vie:viennp:0607

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C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation and Testing

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