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Footloose capital and productive public services

  • Pasquale Commendatore

    ()

    (University of Naples 'Federico II', Italy)

  • Ingrid Kubin

    ()

    (Department of Economics, Vienna University of Economics & B.A.)

  • Carmelo Petraglia

    ()

    (University of Naples 'Federico II', Italy)

We analyse in a Footloose Capital productive public services provided by a central government aiming at reducing regional disparities. Two countervailing effects occur – one upon productivity and another upon local demand – the relative strength of which depends upon the financing scheme. Only if the “rich” region contributes sufficiently to the financing of the public services in the “poor” region, the poor region will actually gain. In studying these questions we pay particular attention to the dynamic adjustment processes and to the role of trade freeness.

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File URL: http://www.wu-wien.ac.at/inst/vw1/papers/wu-wp111.pdf
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Paper provided by Vienna University of Economics and Business, Department of Economics in its series Department of Economics Working Papers with number wuwp111.

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Date of creation: Oct 2007
Handle: RePEc:wiw:wiwwuw:wuwp111
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  58. Dieter Gstach & Andrew Somers & Susanne Warning, 2003. "Output specific efficiencies: The case of UK private secondary schools," Department of Economics Working Papers wuwp084, Vienna University of Economics and Business, Department of Economics.
  59. Christian Ragacs & Thomas Steinberger & Martin Zagler, 1998. "Growth Theories and the Persistence of Output Fluctuations: The Case of Austria," Department of Economics Working Papers wuwp060, Vienna University of Economics and Business, Department of Economics.
  60. Dieter Gstach, 1998. "Technical Efficiency in Noisy Multi-Output Settings," Department of Economics Working Papers wuwp059, Vienna University of Economics and Business, Department of Economics.
  61. Rumler, Fabio, 1999. "Computable general equilibrium modeling. Numerical simulations in a 2-country monetary general equilibrium model," WU Library - ePub - Series 005 70, WU Library - ePub.
  62. Gstach, Dieter, 2003. "A statistical framework for estimating output-specific efficiencies," WU Library - ePub - Series 005 354, WU Library - ePub.
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  65. Gert Wehinger, 1997. "Exchange Rate-Based Stabilization: Pleasant Monetary Dynamics?," Department of Economics Working Papers wuwp050, Vienna University of Economics and Business, Department of Economics.
  66. Wilfried Altzinger, 1998. "Austria's Foreign Direct Investment in Central and Eastern Europe: 'Supply Based' or 'Market Driven'?," Department of Economics Working Papers wuwp057, Vienna University of Economics and Business, Department of Economics.
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  69. Bellak, Christian, 1999. "Explaining foreign ownership by comparative and competitive advantage. Empirical evidence," WU Library - ePub - Series 005 96, WU Library - ePub.
  70. Gstach, Dieter, 1998. "Technical efficiency in noisy multi-output settings," WU Library - ePub - Series 005 1282, WU Library - ePub.
  71. Harald Katzmair, 1999. "Der Modellbegriff in den Sozialwissenschaften. Zum Programm einer kritischen Soziologik," Department of Economics Working Papers wuwp064, Vienna University of Economics and Business, Department of Economics.
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