This paper looks at the dynamic of income distribution in European regions and attempts to relate movements within the distribution to the regional structural characteristics and the support of Cohesion Policy (CP). Empirical evidence highlights two main features of regional development. A...

Regional economic development is driven by the accumulation of production factors. More traditional factors like labour and physical capital are accumulated under the law of diminishing returns. This, in turn, allows less developed regions to better perform. Recent branches of theoretical and...