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Conflicts in Regional Policy

  • Stilianos Alexiadis
Chapter
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Abstract

Using Optimal Control Theory, it is possible to obtain a set of allocation policies that allow policy-makers to maximise total output in the economy. The objective function associated with this problem is explicitly focused upon aggregate efficiency. This aim, however, does not exhaust the possibilities of all economic choices/actions. There are several other aims, which regional policies are called to give solutions. Are these aims compatible or are they contradicting each other? The limitations of the existing theoretical frameworks are identified in this chapter. Some theoretical schemes, in which compatibility in the aims of regional equity and aggregate efficiency arises as a distinct possibility, are also discussed.

Keywords

Trade-off Equity Efficiency Dual objective function Policy weight 

JEL Classification

R10 

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Stilianos Alexiadis
    • 1
  1. 1.Department of Strategic Planning of Rural Development, Evaluation & DocumentationGreek Ministry of Rural Development and FoodAthensGreece

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