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Optimizing German regional policy-2004: A study based on empirical data from 1994 to 2001

Author

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  • Tangian, Andranik S.

Abstract

Reducing disparities among regions within European countries together with economic development is the aim of European and national structural policies. In particular, a European grant contributes to the German governmental program for reducing and equalizing regional unemployment. The goal is to bring unemployment down to the national average by creating new and/or by safeguarding existing jobs, which also contributes to decreasing national unemployment and to GDP growth. The distribution of available aid among 271 German labor market regions is considered as an econometric decision problem with three targets: (1) minimization of unemployment, (2) maximization of GDP, and (3) equalization of regional unemployment rates, subject to the budget constraint and some administrative restrictions. To prepare grounds for optimization, econometric predictions are made for the year 2004 from regional data 1994-2001. The model can be regarded as a prototype of decision-aid for designing regional policy at national and European levels.

Suggested Citation

  • Tangian, Andranik S., 2003. "Optimizing German regional policy-2004: A study based on empirical data from 1994 to 2001," WSI Working Papers 119, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    • Handle: RePEc:zbw:wsidps:119
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    Citations

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    Cited by:

    1. Seifert, Hartmut & Tangian, Andranik, 2007. "Flexicurity: Reconciling Social Security with Flexibility - Empirical Findings for Europe," WSI Working Papers 154, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    2. Tangian, Andranik, 2012. "Statistical test for the mathematical theory of democracy," WSI Working Papers 179, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    3. Tangian, Andranik & Seifert, Hartmut, 2006. "Globalization and deregulation : Does flexicurity protect atypically employed?," WSI Working Papers 143, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    4. Tangian, Andranik S., 2005. "A composite indicator of working conditions in the EU-15 for policy monitoring and analytical purposes," WSI Working Papers 135, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    5. Tangian, Andranik, 2007. "Flexibility-Flexicurity-Flexinsurance: Response to the European Commission's Green Paper "Modernising Labour Law to Meet the Challenges of the 21st Century"," WSI Working Papers 149, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    6. Tangian, Andranik, 2008. "On the European readiness for flexicurity: Empirical evidence with OECD/HBS methodologies and reform proposals," WSI Working Papers 160, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    7. Tangian, Andranik S., 2004. "Constructing the composite indicator "Quality of work" from the third European survey on working conditions," WSI Working Papers 132, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.

    More about this item

    Keywords

    European Commission; structural fund grants; regional policy; unemployment; equalizing regional unemployment rates; economic growth;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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