This paper aims to indicate that an economic recovery of the European economy can be pulled by an increase of the aggregate demand and by the adoption of a new European cohesion policy having an industrial and a territorial dimension. The paper illustrates a theoretical model: the model of the...

I study place based policies under local political economy constraints, asking whether transfers across regions can foster regional convergence. I show that, if local workers can vote over the within-region allocation of the transfers, these may be spent unproductively and be ineffective in...

This paper reconsiders the theoretical foundations of EU regional policy in economics. It begins with a discussion of the line of thought of its prevalent explanation in equilibrium economics which is focusing on market failures as its key underpinning and which is the major toolkit of...