Devolved fiscal powers, increased competitiveness and ‘levelling up’: a simulation approach

Connolly, K., Greig, A., McGregor, P. G., Roy, G. and Swales, J. K. (2023) Devolved fiscal powers, increased competitiveness and ‘levelling up’: a simulation approach. Regional Studies, (doi: 10.1080/00343404.2023.2276333) (Early Online Publication)

Abstract

The UK levelling up agenda includes a commitment to devolution, but there has been little attempt to model the operation of possible accompanying regional tax powers. We use computable general equilibrium simulations to analyse the local impacts of regional tax cuts. These reduce production costs, thereby stimulating regional economic activity. But the financing of any subsequent deficit and the operation of the regional labour market determines the size, nature and dynamics of resulting economic outcomes. Further, the decision to target labour or capital costs has implications for a range of regional economic impacts.

• Item Type: Articles
• Status: Early Online Publication
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Roy, Professor Graeme
• Authors: Connolly, K., Greig, A., McGregor, P. G., Roy, G., and Swales, J. K.
• College/School: College of Social Sciences > Adam Smith Business School
• Journal Name: Regional Studies
• Publisher: Taylor & Francis
• ISSN: 0034-3404
• ISSN (Online): 1360-0591
• Published Online: 29 November 2023
• Copyright Holders: Copyright © 2023 The Authors
• First Published: First published in Regional Studies 2023
• Publisher Policy: Reproduced under a Creative Commons License