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I will survive! The impact of place-based policies when public transfers fade out

Author

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  • Augusto Cerqua
  • Guido Pellegrini

Abstract

Are place-based policies capable of taking lagging areas to a higher growth trajectory permanently? We answer this crucial question by investigating what happens when strongly subsidized regions experience a substantial reduction in funding. By analysing an extensive database via the mean balancing approach, we estimate the causal impact of exiting the convergence region status of the European Union regional policy. We find that only regions that experienced a considerable reduction in funding during a recession suffered a negative impact on economic growth. However, the impact varies with the features of the regions and the local economic context.

Suggested Citation

  • Augusto Cerqua & Guido Pellegrini, 2023. "I will survive! The impact of place-based policies when public transfers fade out," Regional Studies, Taylor & Francis Journals, vol. 57(8), pages 1605-1618, August.
    • Handle: RePEc:taf:regstd:v:57:y:2023:i:8:p:1605-1618
    DOI: 10.1080/00343404.2022.2136370
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    Cited by:

    1. Augusto Cerqua & Guido Pellegrini & Ornella Tarola, 2022. "Can regional policies shape migration flows?," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 515-536, June.
    2. Friedrich Heinemann & Zareh Asatryan & Julia Bachtrögler-Unger & Carlo Birkholz & Francesco Corti & Maximilian von Ehrlich & Ugo Fratesi & Clemens Fuest & Valentin Lang & Martin Weber, 2024. "Enhancing Objectivity and Decision Relevance: A Better Framework for Evaluating Cohesion Policies," EconPol Policy Reports 50, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    3. Baraldi, Anna Laura & Cantabene, Claudia & De Iudicibus, Alessandro & Fosco, Giovanni, 2024. "EU Cohesion Policies between Effectiveness and Equity: An Analysis of Italian Municipalities," MPRA Paper 123048, University Library of Munich, Germany.
    4. Augusto Cerqua & Roberta Di Stefano & Raffaele Mattera, 2024. "Heterogeneous Responses to Continuous Treatments: A Cluster-Based Causal Framework," Papers 2409.08773, arXiv.org, revised Mar 2026.
    5. Scavette, Adam, 2023. "The economic impact of a casino monopoly: Evidence from Atlantic City," Regional Science and Urban Economics, Elsevier, vol. 103(C).
    6. Paolo Di Caro & Ugo Fratesi, 2022. "One policy, different effects: Estimating the region‐specific impacts of EU cohesion policy," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 307-330, January.

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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