The balance of payments can act as a constraint to the rate of growth of output, on putting a limit to the growth in the level of demand to which supply can adapt. This effect might be even stronger for regional economies, presumably more integrated among them. In this paper, we examine this...

Following Aschauer's (1989) influential contribution, the role of public investment has been stressed as a crucial factor leading to higher private capital productivity, which would lead in turn to higher growth rates. According to this author, the decline in productivity growth experienced by...

In this paper, we propose a new methodology for the assessment of EU’s regional policies, making use of the HERMIN macro econometric model. A major feature of our approach is that allows us to compare the actual evolution of the economy under analysis, with and without European funds, so that...

The aim of this paper is to estimate the optimal endowments of public investment in Spanish regions. Starting from the standard dynamic neoclassical model, augmented with the public capital stock, the optimal condition for the provision of public capital would be that, in the steady state, the...

The massive increase in foreign direct investment inflows following the Spanish integration with the now European Union in 1986, has been one of the most important features shaping the behaviour of the Spanish economy in the last twenty years. In this paper we will try to provide an assessment...