Arbeitspapier
North and South: A regional model of the UK
We set up a two-region model to study the policy challenge of bringing the North's income up to the level of the South in the UK. The model focuses on labour costs as the driver of output gains through the international competitiveness channel. The empirical results show that the regional model behaviour fits the regional UK data behaviour over the period of 1986Q1 and 2019Q4, using the demanding Indirect Inference method. We also carry out a Monte Carlo power test, which shows the empirical results we obtain are trustworthy and can provide us a reliable guide for policy reform.The results suggest that in response to tax cuts and labour market reforms GDP in the North increases almost twice as much as GDP in the South. Given that a broad programme of tax cuts and regulatory reform would more than pay for itself in the long run, it must be considered as a highly attractive political agenda.
- Sprache
-
Englisch
- Erschienen in
-
Series: Cardiff Economics Working Papers ; No. E2020/14
- Klassifikation
-
Wirtschaft
Business Fluctuations; Cycles
Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
General Regional Economics (includes Regional Data)
- Thema
-
Regional study
DSGE model
Policy implication
Indirect Inference
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Minford, Patrick
Gai, Yue
Meenagh, David
- Ereignis
-
Veröffentlichung
- (wer)
-
Cardiff University, Cardiff Business School
- (wo)
-
Cardiff
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Minford, Patrick
- Gai, Yue
- Meenagh, David
- Cardiff University, Cardiff Business School
Entstanden
- 2020
Ähnliche Objekte (12)
The effects of Brexit on the UK economy
Understanding UK trade agreements with the EU and other countries
A note rebutting the recent Cambridge Econometrics assessment of Brexit on the UK and London economies: Commissioned by London Mayor Khan
Classical or gravity? Which trade model best matches the UK facts?
Evaluating European trading arrangements
Post-Brexit realism and international law: Renegotiating a bad Withdrawal Agreement
Where next for monetary policy? Lessons from the financial crisis and the pandemic
Commentary on economic projections and rules of thumb for monetary policy (by Athanasios Orphanides and Volker Wieland)
The banking crisis: A rational interpretation
Free Trade under Brexit: Why its benefits have been widely underestimated
Can the fiscal theory of the price level explain UK inflation in the 1970s?
A heterogeneous-agent model of growth and inequality for the UK
The effects of Brexit on the UK economy
Understanding UK trade agreements with the EU and other countries
A note rebutting the recent Cambridge Econometrics assessment of Brexit on the UK and London economies: Commissioned by London Mayor Khan
Classical or gravity? Which trade model best matches the UK facts?
Evaluating European trading arrangements
Post-Brexit realism and international law: Renegotiating a bad Withdrawal Agreement
Where next for monetary policy? Lessons from the financial crisis and the pandemic
Commentary on economic projections and rules of thumb for monetary policy (by Athanasios Orphanides and Volker Wieland)
The banking crisis: A rational interpretation
Free Trade under Brexit: Why its benefits have been widely underestimated
Can the fiscal theory of the price level explain UK inflation in the 1970s?
A heterogeneous-agent model of growth and inequality for the UK
The effects of Brexit on the UK economy
Understanding UK trade agreements with the EU and other countries
A note rebutting the recent Cambridge Econometrics assessment of Brexit on the UK and London economies: Commissioned by London Mayor Khan
Classical or gravity? Which trade model best matches the UK facts?
Evaluating European trading arrangements
Post-Brexit realism and international law: Renegotiating a bad Withdrawal Agreement
Where next for monetary policy? Lessons from the financial crisis and the pandemic
Commentary on economic projections and rules of thumb for monetary policy (by Athanasios Orphanides and Volker Wieland)
The banking crisis: A rational interpretation
Free Trade under Brexit: Why its benefits have been widely underestimated
Can the fiscal theory of the price level explain UK inflation in the 1970s?