Regional economic policy disposes of two principal options to attract private capital, which in turn helps to safeguard employment and to foster regional growth. On the one hand, regional policy could seek to enhance a region's level of public capital (e.g. transport infrastructure), which as a...

Applying an outlier robust extension of the data envelopment analysis (DEA) followed by a geoadditive regression analysis, this study identifies and decomposes the efficiency of 439 German regions in using infrastructure and human capital. The findings show that the regions' efficiency is driven...