What is it about?
The German government provides investment grants to structurally weak regions in order to reduce regional inequality. We use a regression discontinuity design to identify the causal effects of the policy. Our findings: - Investment grants in Germany foster the district-level growth of gross value added and productivity. - Productivity growth is not trickling down to wages. - Contrary to recent literature, we find no effect on growth in districts' employment and wages.
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This page is a summary of: The regional effects of a place-based policy – Causal evidence from Germany, Regional Science and Urban Economics, November 2019, Elsevier,
DOI: 10.1016/j.regsciurbeco.2019.103483.
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