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University Decentralization as Regional Policy: The Swedish Experiment

This study relies upon a twelve-year panel of output, employment and investment for Swedens 285 municipalities, together with data on the location of university researchers and students, to estimate the effects of exogenous changes in educational policy upon regional development. It finds important and significant effects of this policy upon output and productivity, suggesting that the economic effects of the decentralization on regional development are economically important.