The 17 regional governments of Spain receive grants from both the
central government and the European Union. The grants are generally
redistributive and are intended to stimulate economic activity in
the poorer regions. We evaluate the effectiveness of the grants by
comparing the economic performance of the regions before and after
the implementation of the grant programs using a differences--in--
differences approach. We find that these policies have not been
effective at stimulating private ...
The 17 regional governments of Spain receive grants from both the
central government and the European Union. The grants are generally
redistributive and are intended to stimulate economic activity in
the poorer regions. We evaluate the effectiveness of the grants by
comparing the economic performance of the regions before and after
the implementation of the grant programs using a differences--in--
differences approach. We find that these policies have not been
effective at stimulating private investment or improving the overall
economies of the poorer regions.
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