Universal Basic Income as an instrument of regional development policy : a micro-macro economic analysis for Scotland

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Connolly, Kevin and Eiser, David and Kumar, Ashwin and McGregor, Peter G. and Roy, Graeme (2022) Universal Basic Income as an instrument of regional development policy : a micro-macro economic analysis for Scotland. Regional Studies, 56 (6). pp. 1043-1055. ISSN 0034-3404 (https://doi.org/10.1080/00343404.2021.1957090)

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Abstract

Regional development now encompasses inclusive growth so that welfare spending becomes a potentially important policy for regions with devolved powers. Universal Basic Income (UBI), an unconditional payment to all citizens, has been gaining traction, including internationally. We provide a system-wide analysis of a region-specific UBI for Scotland on the level and distribution of regional activity. Using both micro- and macro-economic models we find that, although UBI has a beneficial effect on equity among households, it may adversely impact the level of economic activity unless there is a social contract in place and/ or there is a substantial stimulus to productivity.

ORCID iDs

Connolly, Kevin ORCID logoORCID: https://orcid.org/0000-0003-2333-2211, Eiser, David, Kumar, Ashwin, McGregor, Peter G. ORCID logoORCID: https://orcid.org/0000-0003-1221-7963 and Roy, Graeme;
CORE (COnnecting REpositories)