We analyse in a Footloose Capital productive public services provided by a central government aiming at reducing regional disparities. Two countervailing effects occur – one upon productivity and another upon local demand – the relative strength of which depends upon the financing scheme. Only if the “rich” region contributes sufficiently to the financing of the public services in the “poor” region, the poor region will actually gain. In studying these questions we pay particular attention to the dynamic adjustment processes and to the role of trade freeness.
Footloose Capital and Productive Public Services / Commendatore, P; Kubin, I; Petraglia, Carmelo. - (2007). (Intervento presentato al convegno The Institutional and Social Dynamics of Growth and Distribution Conference tenutosi a Lucca nel 10-12 Dicembre 2007).
Footloose Capital and Productive Public Services
COMMENDATORE P;PETRAGLIA, CARMELO
2007
Abstract
We analyse in a Footloose Capital productive public services provided by a central government aiming at reducing regional disparities. Two countervailing effects occur – one upon productivity and another upon local demand – the relative strength of which depends upon the financing scheme. Only if the “rich” region contributes sufficiently to the financing of the public services in the “poor” region, the poor region will actually gain. In studying these questions we pay particular attention to the dynamic adjustment processes and to the role of trade freeness.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
