25-39

• Πολύζος, Σεραφείμ
• Sdrolias, Labros

The government aiming at reducing inequalities uses different types of public investment, while regional prosperity is associated with inequalities. Therefore an affective allocation of a Public Investment Program is of great importance and has aroused the interest within the years. Public spending on investment derives from the Public Investment Program (PIP) presented in the annual Budget of the Greek government. Throughout the past years the Greek government spent large amounts of money on investment projects in the Greek prefectures using political criteria. The question to be solved is whether there is a mathematical way of solving this regional allocation problem. In this context, the paper investigates the allocation of public investment using the corresponding rate of distribution found in literature. One of the various applications of regional multipliers is in regional policy depicting the regional inequalities. The rate of distribution that is examined is first described. Then a study is performed using this rate of distribution and data from Greece and the results are compared to the investment allocation in Greece. Finally a sensitivity analysis is performed and the derived conclusions are cited.

• Economics and Business

• Public administration
• Regional economics
• Public domain

public investment, regional allocation, regional prosperity, regional multipliers

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