Regional policy evaluation
This chapter proposes a broad framework in which to analyse the benefits and costs of regional policies before assessing the problems and possibilities of empirical estimation. It distinguishes between income from jobs formally attributed to policy but which would have materialized independently without it and other income specifically crowded out by policy. The two categories of policy are often characterized as respectively 'taking workers to the work' and 'taking work to the workers'. Evaluation of regional policies may proceed from social, economic or purely financial perspectives, the latter from the point of view of particular firms or individuals relocated under the policy or the Treasury responsible for funding the policy. Primary monetary benefits are identified as incremental value added within the jurisdiction from whose viewpoint the analysis is conducted, that is, policy-generated income accruing to residents of that jurisdiction. Costs comprise the public policy costs of administration and infrastructure together with policy subsidy payments.