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An Economic Analysis of the Revised Regional Development Grant Scheme

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  • Wren, C M
  • Swales, J K

Abstract

This paper examines the factors underlying the take-up and effectiveness of the revised Regional Development Grant scheme, an instrument of U.K. regional policy operated between 1984 and 1988. Assistance under this scheme was available either as a proportionate capital grant or as a lump-sum marginal employment subsidy. Using a cost function approach and a Cobb-Douglas production function, conditions are derived determining take-up. Simulation suggests that assistance will generally be taken up as a job grant, and this is borne out by empirical evidence. Some implications for effectiveness are drawn. Copyright 1991 by Scottish Economic Society.

Suggested Citation

  • Wren, C M & Swales, J K, 1991. "An Economic Analysis of the Revised Regional Development Grant Scheme," Scottish Journal of Political Economy, Scottish Economic Society, vol. 38(3), pages 256-272, August.
    • Handle: RePEc:bla:scotjp:v:38:y:1991:i:3:p:256-72
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    Cited by:

    1. Harrigan, Frank & McGregor, Peter G & Swales, J K, 1996. "The System-Wide Impact on the Recipient Region of a Regional Labour Subsidy," Oxford Economic Papers, Oxford University Press, vol. 48(1), pages 105-133, January.

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