Regional Economic Policy

1. Introduction.- 1.1. The purpose of this study.- 1.2. Main causes of spatial inequality and justification of regional economic policy.- 1.3. Outline of the study.- I : Methodology.- 2. A Conceptual Framework.- 2.1. Introduction.- 2.2. Definition of regional economic policy.- 2.3. Policy evaluation and impact assessment.- 2.4. Classification of policy instruments.- 2.4.1. Control and influencing instruments.- 2.4.2. Some theories of regional economic development.- 2.4.3. Overview and classification of Dutch instruments.- 2.5. The causal context and the multi-effective nature of regional economic policy.- 2.5.1. The causal framework.- 2.5.2. The regional profile.- 2.5.3. Direct, indirect and n-th order effects.- 2.6. Interregional effects of regional economic policy.- 2.7. Latent variables.- 2.8. Conclusions.- 3. Overview and Methodological Aspects of Various Operational Measurement Approaches.- 3.1. Introduction.- 3.2. Representation of policy variables in a measurement model.- 3.3. Micro approaches.- 3.3.1. Controlled experimentation.- 3.3.2. Quasi-experimental and non-experimental research.- 3.4. Spatial approaches.- 3.4.1. Introduction.- 3.4.2. Approaches with explanatory variables of the policy type only ;.- 3.4.3. Single equation models with explanatory variables of the non-policy type only.- 3.4.4. Single equation models with both policy and non-policy variables as explanatory variables.- 3.4.5. Simultaneous equation models.- 3.4.5.1. General simultaneous equation models.- 3.4.5.2. Input output models.- 3.5. Instruments of regional economic policy and measurement approaches of their impacts.- 3.6. Conclusions.- II: Econometric Methods.- 4. Linear Structural Equation Models with Latent Variables.- 4.1. Introduction.- 4.2. The structure.- 4.2.1. The latent variables measurement models and the structural model.- 4.2.2. Submodels.- 4.2.3. The theoretical and the sample covariance matrices.- 4.3. Identification.- 4.4. Estimation of the model.- 4.5. Estimation of the residuals.- 4.6. Model judgement and model modification.- 4.6.1. Introduction.- 4.6.2. LISREL judgement statistics.- 4.6.3. Diagnostic checking.- 4.6.4. Hypothesis testing.- 4.7. Conclusions.- 5. Spatio-Temporal Lisrel Models.- 5.1. Introduction.- 5.2. The nature of spatio-temporal correlation.- 5.2.1. Introduction.- 5.2.2. Spatial correlation.- 5.2.3. The structure of the spatio-temporal LISREL model.- 5.3. Detection of spatio-temporal correlation.- 5.3.1. Measures of spatial correlation.- 5.3.2. Detection of omitted spatial correlation.- 5.3.3. Detection of temporal autocorrelation.- 5.4. Specification of spatio-temporal LISREL models.- 5.4.1. LISREL specifications for spatial correlation.- 5.4.1.1. Introduction.- 5.4.1.2. LISREL specifications for ommitted spatial correlation.- 5.4.1.3. Transformations for residual spatial correlation.- 5.4.2. LISREL specifications for temporal autocorrelation.- 5.5. Conclusions.- 6. The Spatio-Temporal Lisrel Impact Model.- 6.1. Introduction.- 6.2. The structure of a spatio-temporal LISREL measurement model.- 6.2.1. Basic requirements of a measurement model.- 6.2.2. The formal LISREL impact model.- 6.3 Point estimators of effects of economic policy.- 6.3.1. Introduction.- 6.3.2. Effects of latent endogenous variables on each other.- 6.3.3. Effects of latent endogenous variables on observable endogenous variables.- 6.3.4. Effects of exogenous latent variables on endogenous latent variables.- 6.3.5. Effects of exogenous latent variables on observable endogenous variables.- 6.3.6. The sum of effects of policy packages over several periods.- 6.3.7. Effects of endogenous and exogenous observable variables on endogenous observable variables.- 6.4. Confidence intervals.- 6.4.1. Introduction.- 6.4.2. Direct effects.- 6.4.3. Indirect effects.- 6.5. Conclusions and summary of the main features of a spatio-temporal LISREL measurement model.- 7. Two-Stage Time Series Analysis.- 7.1. Introduction.- 7.2 Some defintions for times series modelling.- 7.3 The intraregional measurement model.- 7.3.1. Introduction.- 7.3.2. The general class of SARIMA models.- 7.3.3. A general class of intervention models.- 7.4 Fitting the intraregional measurement model.- 7.4.1. The stage of model indentification.- 7.4.1.1. The pre-intervention model.- 7.4.1.1.1. The period.- 7.1.1.1.2. Degrees of differencing.- 7.1.1.1.3. Model order.- 7.1.1.2. The intervention model.- 7.1.1.2.1. Single interventions.- 7.1.1.2.2. Repeated pulse interventions.- 7.1.2. The stage of estimating the model parameters,.- 7.1.3. The stage of diagnostic checking.- 7.5. The interregional model.- 7.6. Conclusions.- 8. The Bootstrap, the Jackknife and Model Selection.- 8.1. Introduction.- 8.2. The general idea and main characteristics of the bootstrap.- 8.2.1. Univariate situations.- 8.2.2. Multivariate situations.- 8.3. The jackknife.- 8.4. Model selection.- 8.5. Conclusions.- III : Case Studies.- 9. Effects of Regional Industrializations Policy.- 9.1. Introduction.- 9.2. History and main features of the investment premiums and fiscal accelerated depreciation arrangements.- 9.3. Overview of additional instruments of Dutch regional industrialization policy.- 9.4. The conceptual measurement model.- 9.4.1. General structure.- 9.4.2. Formal representation.- 9.5. The empirical measurement model.- 9.5.1. Introduction.- 9.5.2. Spatial correlation.- 9.5.3. The main estimation results.- 9.6. Conclusions.- Appendix 9.I The Dutch Provinces.- Appendix 9.II Percentages for investment premiums (IP) and fiscal accelerated depreciations (FA), 1973–1976.- Appendix 9.III Matrix of orders of contiguity of the Dutch provinces.- Appendix 9.IV Sources of the variables of model (9.9)-(9.15).- Appendix 9.V A priori structure of the matrices ??,?? and ?.- Appendix 9.VI Coefficients of kurtosis and skewness of the endogenous observable variables of model (9.9)-(9.15).- Appendix 9.VII Moran coefficients of spatial auto- and crosscorrelations of the relevant observables of model (9.9)-(9.7).- Appendix 9.VIII The matrices $${\hat \odot _\varepsilon }$$ and $${\rm{\hat \psi }}$$ of model (9.9)-(9.15).- 10. Effects of Extra Employment Programs.- 10.1. Introduction.- 10.2 Identification, estimation and checking of the pre-intervention model.- 10.3. The intervention model.- 10.4 Conclusions.- Appendix 10.I Number of oficially unemployed building trade workers in the sector of public infrastructure in Groningen, 1965–1971..- Appendix 10.11 Expenditures on extra employment programs in Groninger 1972–1976..- Epilogue.- 11. Some Issues for Further Research.- 11.1 Introduction.- 11.2 Inclusion of rational expectations in the measurement model.- 11.3 Towards more comprehensive froms of impact assessment and policy evaluation.- References.