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The regional effects of a place-based policy – Causal evidence from Germany

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Listed:
  • Brachert, Matthias
  • Dettmann, Eva
  • Titze, Mirko

Abstract

The German government provides discretionary investment grants to structurally weak regions in order to reduce regional inequality. We use a regression discontinuity design that exploits an exogenous discrete jump in the probability of regional actors to receive investment grants to identify the causal effects of the policy. We find positive effects of the programme on district-level gross value-added and productivity growth, but no effects on employment and gross wage growth.

Suggested Citation

  • Brachert, Matthias & Dettmann, Eva & Titze, Mirko, 2019. "The regional effects of a place-based policy – Causal evidence from Germany," Regional Science and Urban Economics, Elsevier, vol. 79(C).
  • Handle: RePEc:eee:regeco:v:79:y:2019:i:c:s016604621830382x
    DOI: 10.1016/j.regsciurbeco.2019.103483
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    References listed on IDEAS

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    More about this item

    Keywords

    Causal analysis; Place-based policy; Regression discontinuity design;

    JEL classification:

    • Z0 - Other Special Topics - - General
    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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