TY  - GEN
AB  - Regions within the European Union differ substantially not only
with respect to per capita GDP, but also with respect to income inequality
within the regions. This paper studies the effects of different
types of technology-oriented cohesion policies, aiming at the reduction
of regional differences, on the convergence of regions and the dynamics
of income inequality within regions. In particular, policies are
analyzed using a two-region agent-based macroeconomic model – the
Eurace@Unibi model – where firms in the lagging region receive subsidies
for investment in physical capital. It is demonstrated that the
short-, medium- and long-term effects of the policies on per-capita
output and between as well as within regional inequality differ substantially
depending on how successful the policy is in incentivizing
firms to choose best available capital vintages and on how flexible labor
markets are in the targeted region.
DA  - 2013
DO  - 10.4119/unibi/2915440
KW  - cohesion policies
KW  - technology adoption
KW  - agent-based model
KW  - inequality
LA  - eng
PY  - 2013
SN  - 2196-2723
SP  - 44-
TI  - Cohesion Policy and Inequality Dynamics: Insights from a Heterogeneous Agents Macroeconomic Model
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29154403
Y2  - 2024-11-24T17:04:45
ER  -