The Role of Public Policy in the Process of Regional Convergence - Sciences Po Access content directly
Journal Articles EIB Papers Year : 2000

The Role of Public Policy in the Process of Regional Convergence

Philippe Martin

Abstract

This paper analyses the efficiency and the equity motives that can justify regional policies. The market failure induced by localized technological spillovers entails too little agglomeration. However, coordination failures and the fact that firms do not take into account the welfare of immobile agents entail too much agglomeration. We argue that diminishing inter-regional inequality may have an undesirable impact on inequalities between workers and capital owners in the rich region. We also analyze the short-term demand and the long term supply effects of regional policies. Finally, we argue that due to non linear effects, regional policies may be useless most of the time and very powerful in particular circumstances.
Fichier principal
Vignette du fichier
eibpapers-2000-v05-n02-a04-en.pdf (91.76 Ko) Télécharger le fichier
Origin : Explicit agreement for this submission
Loading...

Dates and versions

hal-01011336 , version 1 (23-06-2014)

Identifiers

  • HAL Id : hal-01011336 , version 1
  • SCIENCESPO : 2441/9328

Cite

Philippe Martin. The Role of Public Policy in the Process of Regional Convergence. EIB Papers, 2000, 5 (2), pp.69-79. ⟨hal-01011336⟩
170 View
132 Download

Share

Gmail Facebook Twitter LinkedIn More