Fiscal Transfers in the Spatial Economy
| Autor: | Jens Suedekum, Tobias Seidel, Marcel Henkel |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Labor mobility
education.field_of_study General equilibrium theory media_common.quotation_subject Measures of national income and output Population International economics Wirtschaftswissenschaften Economics Per capita Baseline (configuration management) education General Economics Econometrics and Finance Welfare Productivity media_common |
| Zdroj: | American Economic Journal: Economic Policy. 13:433-468 |
| ISSN: | 1945-774X 1945-7731 |
| DOI: | 10.1257/pol.20180294 |
| Popis: | Many countries shift substantial public resources across jurisdictions to mitigate spatial economic disparities. We use a general equilibrium model with multiple asymmetric regions, labor mobility, and costly trade to carve out the aggregate implications of fiscal transfers. Calibrating the model for Germany, we find that transfers indeed deliver smaller disparities across regions. This comes at the cost of lower national output, however, because economic activity is diverted away from core cities and toward remote areas with low productivity. But despite this loss in output per capita by about 2 percent in our baseline specification, welfare still increases by 0.07 percent because the transfer scheme countervails overcongestion in large cities. If the optimal transfer regime was implemented, welfare would increase by 0.06 percent. (JEL H77, J61, R12, R13, R23) |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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