Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/250324 
Erscheinungsjahr: 
2020
Schriftenreihe/Nr.: 
Cardiff Economics Working Papers No. E2020/14
Verlag: 
Cardiff University, Cardiff Business School, Cardiff
Zusammenfassung: 
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.
Schlagwörter: 
Regional study
DSGE model
Policy implication
Indirect Inference
JEL: 
E32
E60
R10
Dokumentart: 
Working Paper

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