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Regional Policy: An Alternative Approach


  • Alexiadis, Stilianos


The regional policy problem is often conceived as a trade-off between aggregate efficiency and interregional equity. A policy to allocate investment across regions frequently causes a contradiction in the aims of regional policy, in the sense that it might lead to high rates of aggregate growth accompanied with an unequal distribution of income across regions. On the other hand, a policy to reduce regional inequalities may in fact be inefficient to promote growth of the economy as a whole. It is argued further that under certain conditions the contradiction between aims can be avoided.

Suggested Citation

  • Alexiadis, Stilianos, 2013. "Regional Policy: An Alternative Approach," MPRA Paper 47063, University Library of Munich, Germany, revised 2013.
  • Handle: RePEc:pra:mprapa:47063

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    References listed on IDEAS

    1. Smith, Paul E, 1970. "Recent Approaches to Dynamic Stability in Macro-Economic Models," Public Finance = Finances publiques, , vol. 25(1), pages 1-23.
    2. MICHEL, Philippe & PESTIEAU, Pierre & THISSE, Jacques-François, 1983. "Regional allocation of investment with distributive objectives," CORE Discussion Papers RP 523, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Optimal Control Theory; Regional Disparities; Regional Policy;

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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