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Regional economic growth by policy-induced capital flows: II. Policy simulation results

  • Walter Buhr

    (Department of Economics, University of Siegen, HÃlderlinstrasse 3, D-57068 Siegen, Germany)

This second part of the paper refers to a model, described in Part I, that has been designed to analyze alternative allocation strategies of regional economic growth policy: "movement of the workers to the jobs" (passive factor stocks adjustment) or "jobs to the workers" (active factor stocks adjustment). After concentrating on the main properties of the model structure, the references of the parameters and initial values to empirical data are discussed. Model results derived on the basis of parameters representative for the case of passive adjustment policy are studied, also extensively taking account of the impacts of parameter variations. Then follows the analysis of simulation results of active adjustment. The main purpose of all calculations is to demonstrate that the model is able to generate reasonable and consistent policy effects. Moreover, with respect to the model and its parameters this paper attempts to contribute to finding a solid standpoint as to the preconditions of a successful active regional economic policy.

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Article provided by Springer in its journal The Annals of Regional Science.

Volume (Year): 29 (1995)
Issue (Month): 3 ()
Pages: 255-276

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Handle: RePEc:spr:anresc:v:29:y:1995:i:3:p:255-276
Note: Received: November 1990 / Accepted: August 1994
Contact details of provider: Web page: http://link.springer.de/link/service/journals/00168/index.htm

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