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Title: Regional Policy Spillovers: The National Impact of Demand-Side Policy in an Interregional Model of the UK Economy
Author(s): Gilmartin, Michelle
Learmonth, David
McGregor, Peter G
Swales, J Kim
Turner, Karen
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Citation: Gilmartin M, Learmonth D, McGregor PG, Swales JK & Turner K (2011) Regional Policy Spillovers: The National Impact of Demand-Side Policy in an Interregional Model of the UK Economy. SIRE Discussion Paper, SIRE-DP-2011-46. Scottish Institute for Research in Economics.
Keywords: regional CGE modelling
regional development policy
Regional economics
Regional growth
Labor economics
JEL Code(s): C68: Computable General Equilibrium Models
D58: Computable and Other Applied General Equilibrium Models
R58: Regional Development Planning and Policy
Issue Date: 31-Dec-2011
Date Deposited: 11-Feb-2013
Publisher: Scottish Institute for Research in Economics (SIRE)
Series/Report no.: SIRE Discussion Paper, SIRE-DP-2011-46
Abstract: UK regional policy has been advocated as a means of reducing regional disparities and stimulating national growth. However, there is limited understanding of the interregional and national effects of such a policy. This paper uses an interregional computable general equilibrium model to identify the national impact of a policy-induced regional demand shock under alternative labour market closures. Our simulation results suggest that regional policy operating solely on the demand side has significant national impacts. Furthermore, the effects on the non-target region are particularly sensitive to the treatment of the regional labour market.
Type: Working Paper
Rights: Published by the University of Strathclyde and the University of Stirling
Affiliation: Economics
University of Strathclyde
University of Strathclyde
University of Strathclyde

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