Using a natural experiment from Germany, we show that temporary place-based subsidies generate persistent effects on economic density. We identify employment and capital formation as main channels for higher income per square kilometer. As the spatial regression discontinuity design allows us to...

Although decision processes at the EU level are highly complex and often require unanimity, explicit side payments among member states are unknown. However, logrolling and redistributive policies are substitutes. This paper considers the EU regional policy as a substitute for explicit side...

During this period marked by the effects of the current economic crisis, the structural funds play most important role in regional development. Each country of the Union, especially those in development they wish to reach the level of the developed world, so you must access the funds in order to...

Fiscal positions of African countries have improved significantly during the past decade. Higher economic growth, better terms of trade, improved donor support notably through debt relief and better control of expenditure contributed to this improvement. But at the same time government revenue...

The global financial crisis which emerged in developed countries has spread to the developing world. Forecasts of growth in developing countries have been downgraded a lot and questions remain as to how profound, for how long these problems will broaden which countries will be affected more than...

In recent times people have been speaking more often about the global economic and financial crisis and the effects it has on the economies of the world’s states. Countries with strong economies such as the USA, Japan or the developed countries in Europe have suffered from the global crisis,...

The development policy promoted by the European Union is a policy of social and economic cohesion, based mainly on active development measures. Political and financial support granted by the European Union aims at achieving a higher level of development capable of delivering economic and social...

The regional development policy is one of the most important policies and one of the most complex in the EU, as its status is derived from its goal of reducing the economic and social gaps existing between different regions of Europe and it influences different domains that are important for...

To achieve the objectives of regional development, local collectivities must have financial resources. These resources come mainly from local taxes, from the revenues of their own activities, are thus, directly proportional to the volume of economic activity in the territory. Therefore, for the...

In this paper we develop a general model of an imperfectly competitive small open economy. There is a traded and non-traded sector, whose outputs are combined in order to produce a single final good that can be either consumed or invested. We make general assumptions about preferences and...