TY  - GEN
AB  - In the aftermath of the financial crisis, with periphery countries
in the European Union even more falling behind the core countries
economically, there have been quests for various kind of fiscal policies
in order to revert divergence. How these policies would unfold and
perform comparatively is largely unknown. We analyze four such stylized
policies in an agent-based macroeconomic model and study the
economic mechanisms behind their relative success. Our main findings
are that the core country sharing the debt burden of the periphery
country has almost no effect on the growth dynamics of that region,
fiscal transfers have a positive short and long run impact on per capita
consumption in the target region, and that technology oriented firm
subsidies have the strongest positive long run impact on competitiveness
of the periphery country at which they are targeted. The positive
effect of the technology oriented policy is reinforced if combined with
household transfers.
DA  - 2016
DO  - 10.4119/unibi/2915603
KW  - fiscal transfers
KW  - regional economic growth
KW  - agent-based macroeconomic model
LA  - eng
PY  - 2016
SN  - 2196-2723
SP  - 30-
TI  - Fiscal Transfers and Regional Economic Growth
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29156034
Y2  - 2024-11-25T02:23:39
ER  -