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Regional redistribution policy and welfare in a two-region endogenous growth model

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  • Yutaro Murakami

    (Graduate School of Economics, Osaka University)

Abstract

This paper constructs a two-region endogenous growth model with productive government expenditure to analyze the relationship between regional redistribution of public input and the welfare of residents in each region. This paper shows that the redistribution policy may be Pareto improving if the distribution rate of a more populous region is increased because it raises the equilibrium growth rate. Furthermore, the higher the inequalities between the labor populations are, the greater the possibility of a Pareto improving policy.

Suggested Citation

  • Yutaro Murakami, 2005. "Regional redistribution policy and welfare in a two-region endogenous growth model," Discussion Papers in Economics and Business 05-07, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:0507
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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0507.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Endogenous growth; Government expenditure; Regional distribution; Welfare; Pareto improving policy;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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