Cost of Capital, Regional Policy and Space

Project: Research

Project Details


The "cost of capital" concept has been built in an a-spatial context. While commonly used,
this approach is not exempt of criticisms. In particular, the plausibility of undifferentiated-space assumption is questioned.

The object of the research is :
1. to extend the cost of capital framework by accounting for space;
2. to determine what regional policy has to be implemented to make up for regional disparities
in productivity.
Effective start/end date1/01/0631/12/08


  • productivity differential
  • Cost of capital
  • space
  • effective tax rates