Regional Unemployment Disparities: Can Fiscal Policy Help?
Regional unemployment disparities are widely observed, appear to persist through time and are often a reason for concern on the part of both regional and national governments. This paper constructs a small two-region general-equilibrium model and uses it to assess the effectiveness of traditional fiscal policy in combating regional unemployment disparities. The model is based on optimising behaviour of households and firms and incorporates inter-regional migration. It is calibrated using data for the Australian states and then simulated to evaluate the effects of expenditure changes by both regional and federal governments. In particular, we consider (i) a rise in federal government spending in one region, (ii) a rise in regional government spending, (iii) a policy of ‘unlocking the forests’ in which a regional government increases the availability of regional natural resources, and (iv) a general increase in federal government spending. The results are often surprising – only the fourth policy reduces unemployment in the high-unemployment region and all policies exacerbate the disparity.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 7 (2004)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://business.curtin.edu.au/research/publications/journals/ajle/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ozl:journl:v:7:y:2004:i:1:p:13-37. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alan Duncan)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.