Digital Library of the European Council for Modelling and Simulation

Title:	European Regional Policy: An Assessment In The Context Of A Growth Model
Authors:	Ingrid Ott, Susanne Soretz
Published in:	(2009).ECMS 2009 Proceedings edited by J. Otamendi, A. Bargiela, J. L. Montes, L. M. Doncel Pedrera. European Council for Modeling and Simulation. doi:10.7148/2009 ISBN: 978-0-9553018-8-9 23^rd European Conference on Modelling and Simulation, Madrid, June 9-12, 2009
Citation format:	Ott, I., & Soretz, S. (2009). European Regional Policy: An Assessment In The Context Of A Growth Model. ECMS 2009 Proceedings edited by J. Otamendi, A. Bargiela, J. L. Montes, L. M. Doncel Pedrera (pp. 451-456). European Council for Modeling and Simulation. doi:10.7148/2009-0451-0456
DOI:	http://dx.doi.org/10.7148/2009-0451-0456
Abstract:	This paper analyzes, within a regional growth model, the impact of productive governmental policy and inte- gration on the spatial distribution of economic activity. Integration is understood as enhancing territorial coop- eration between the regions, and it describes the extent to which one region may benefit from the other region’s public input, e.g. the extent to which regional road net- works are connected. Both integration and the charac- teristics of the public input crucially affect whether ag- glomeration arises and if so to which extent economic activity is concentrated: As a consequence of enhanced integration, agglomeration is less likely to arise and con- centration will be lower. Relative congestion reinforces agglomeration, thereby increasing equilibrium concen- tration. Due to the congestion externalities, the market outcome ends up in suboptimally high concentration.
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