IDEAS home Printed from https://ideas.repec.org/a/eee/paresc/v82y2003i4p535-554.html

Interregional transfers: A political economy CGE approach**The research reported in this article was supported by a SPIRT Grant from the Australian Research Council. We are indebted to Peter Dixon, James Giesecke, Sang Hee Han, Peter McGregor, Alex Scherini, two anonymous referees, and the Pacific editor for their valuable comments and suggestions. The usual disclaimer applies

Author

Listed:
  • Groenewold, Nicolaas
  • Hagger, Alfred J.
  • Madden, John R.

Abstract

We model the effects of changes in a federal government's inter regional transfers within the context of a CGE model of a federal system in which regional governments act to maximise the welfare of the residents of their region subject to the effects of their decision on regional economic outcomes. Regional governments are modelled as players in a non cooperative game. Simulations are conducted with six versions of a small two region model, each calibrated for a particular Australian state and the rest of the nation. We show that a change in the level of transfers has little influence on per capita private consumption, government consumption and welfare, and that its main effect is to induce migration from the donor region to the recipient region.

Suggested Citation

Handle: RePEc:eee:paresc:v:82:y:2003:i:4:p:535-554
DOI: 10.1007/s10110-003-0191-x
as

Download full text from publisher

File URL: http://www.sciencedirect.com/science/article/pii/S1056819023016378
Download Restriction: Full text for ScienceDirect subscribers only
File URL: https://libkey.io/10.1007/s10110-003-0191-x?utm_source=ideas
LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
---><---

As the access to this document is restricted, you may want to

for a different version of it.

More about this item

Keywords

;
;
;
;
;

JEL classification:

  • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
  • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
  • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
  • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
  • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

Statistics

Access and download statistics

Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:paresc:v:82:y:2003:i:4:p:535-554. See general information about how to correct material in RePEc.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

We have no bibliographic references for this item. You can help adding them by using this form .

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/papers-in-regional-science .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.