Konferenzbeitrag

EU regional policy: Its theoretical foundations and their policy conclusions revisited

This paper reconsiders the theoretical foundations of EU regional policy in economics. It begins with a discussion of the line of thought of its prevalent explanation in equilibrium economics which is focusing on market failures as its key underpinning and which is the major toolkit of economists for policy recommendations in this context. Subsequently, this view is contrasted with a non-equilibrium economics perspective on EU regional policy. Based on this, the existence of market failures and the relevance of equilibrium economics for a realistic understanding of and policy advice for EU regional policy are called into question. That is why, a more substantive politico-economic explanation and different policy conclusions for the regional policy of the EU are offered. The paper particularly focuses on the implications of the latter for the European Economic and Monetary Union in light of the persisting financial crisis and the vast economic disparities existing within it. Finally, the non-equilibrium economics perspective on EU regional policy is also animadverted, since market failure thinking still prevails in this branch of economics undermining its own criticism of equilibrium economics.

Language
Englisch

Bibliographic citation
Series: 54th Congress of the European Regional Science Association: "Regional development & globalisation: Best practices", 26-29 August 2014, St. Petersburg, Russia

Classification
Wirtschaft
Current Heterodox Approaches: Historical; Institutional; Evolutionary
Fiscal Policy
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
National Government Expenditures and Welfare Programs
Economic Development: General
Urban, Rural, Regional, Real Estate, and Transportation Economics: General
Subject
circular and cumulative causation
structural funds
non-equilibrium economics
increasing returns
EU regional policy
market failures

Event
Geistige Schöpfung
(who)
Schmidt, Peter
Event
Veröffentlichung
(who)
European Regional Science Association (ERSA)
(where)
Louvain-la-Neuve
(when)
2014

Handle
Last update
20.09.2024, 8:22 AM CEST

Data provider

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Konferenzbeitrag

Associated

  • Schmidt, Peter
  • European Regional Science Association (ERSA)

Time of origin

  • 2014

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