Policy spillovers in a regional target-setting regime
Learmonth, David and Swales, J. Kim (2005) Policy spillovers in a regional target-setting regime. Environment and Planning A. ISSN 0308-518X
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Abstract
The present UK government has introduced a decentralised, target-driven framework for the delivery of regional policy in England. This paper analyses the operation of such a regime when there are spatial spillovers about which the government is uninformed. It stresses the simple idea that spillovers in such a setting normally lead to a sub-optimal allocation of policy expenditures. A key result is that the existence of negative spillovers on some policies generates expenditure switching towards those policies. The extent of the expenditure switching is related to a number of factors: the size of the spillovers; the initial policy weights in the government's welfare function; the number of agencies; the extent of their knowledge of spillovers; and their degree of collusion. Such expenditure switching is generally not welfare maximising.
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Item type: Article ID code: 8749 Dates: DateEvent2005PublishedNotes: European Regional Science Association August 2-6, 1090 Vienna, Austria Subjects: Social Sciences > Commerce
Social Sciences > Economic TheoryDepartment: Strathclyde Business School > Fraser of Allander Institute
Strathclyde Business School > EconomicsDepositing user: Strathprints Administrator Date deposited: 14 Oct 2009 12:44 Last modified: 02 Oct 2024 00:19 Related URLs: URI: https://strathprints.strath.ac.uk/id/eprint/8749