The regional impact of national economic policies: a multi-regional simulation approach for the UK

Abstract

Elias P. (1982) The regional impact of national economic policies: a multi-regional simulation approach for the UK, Reg. Studies 16, 335–43. The paper examines the thesis that UK regional policies, aimed at influencing the spatial allocation of labour and capital, can be pursued through the operation of broadly defined national policy instruments. Using a simple ‘top-down’ multi-regional labour market model, linked to a national macroeconomic model, the regional impact of three medium-term employment-stimulating policy packages is derived. The results suggest that efforts to stimulate employment by increasing public expenditure above planned levels will have the most significant impact in the relatively prosperous area surrounding Greater London, whereas a downward movement in the exchange rate or reductions in employment taxes coupled with a stimulus to investment have maximum effect in the West Midlands and the North West.