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The efficiency of fiscal measures in preventing out migration from North Finland
[Zeitschriftenartikel]
Abstract In this paper we introduce a computable general equilibrium (CGE) model for the Finnish regional economy, RegFin. This multi-sector and interregional model characterizes economic activity in the regions of Lappi, Pohjois-Pohjanmaa, Kainuu, Keski-Pohjanmaa and the rest of Finland. Unemployment and ne... mehr
In this paper we introduce a computable general equilibrium (CGE) model for the Finnish regional economy, RegFin. This multi-sector and interregional model characterizes economic activity in the regions of Lappi, Pohjois-Pohjanmaa, Kainuu, Keski-Pohjanmaa and the rest of Finland. Unemployment and net migration are determined endogenously within the model. We consider the macroeconomic effects of a regional policy applied to North Finland that is similar to tax reforms which have been implemented in Norway. The key feature of the policy concerns regionally differentiated tax rates. Tax incentives affect individual choices regarding both migration and employment. We also study a value-added tax reform where labour costs are exempted from the tax base. Our simulations seem to indicate that the regional differentiation of the social security payments of the employers and the value-added tax reform could be effective tools of regional policy.... weniger
Klassifikation
Raumplanung und Regionalforschung
Arbeitsmarktforschung
Öffentliche Finanzen und Finanzwissenschaft
Freie Schlagwörter
payroll taxation, value-added taxation; Computable General Equilibrium (CGE) modelling; RegFin regional model
Sprache Dokument
Englisch
Publikationsjahr
2010
Seitenangabe
S. 465-475
Zeitschriftentitel
Regional Studies, 44 (2010) 4
DOI
https://doi.org/10.1080/00343400802508786
Status
Postprint; begutachtet (peer reviewed)
Lizenz
PEER Licence Agreement (applicable only to documents from PEER project)