Please use this identifier to cite or link to this item:
http://hdl.handle.net/2445/116762
Title: | Policy competition and agglomeration: a local government view |
Author: | Gerritse, Michiel |
Keywords: | Competència econòmica Concentració industrial Administració local Béns públics Competition Industrial concentration Local government Public goods |
Issue Date: | 2010 |
Publisher: | Institut d’Economia de Barcelona |
Series/Report no: | [WP E-IEB10/31] |
Abstract: | This paper presents a model of local government policy competition in an New Economic Geography-setting. To maximize welfare, local governments can subsidize a mobile factor or provide public goods. In the local perspective, firms’ vertical linkages promote colocation and policy (subsidy) setting is simultaneous, giving rise to mixed profiles. Agglomeration benefits lead larger regions to set higher subsidies, preventing a race to the top. We show the results numerically as well as in an analytical case. In contrast to related literature, policy harmonization can be welfare-improving, mainly due simultaneous policy-setting with a (local) utilitarian objective. |
Note: | Reproducció del document publicat a: http://www.ieb.ub.edu/2012022157/ieb/ultimes-publicacions |
It is part of: | IEB Working Paper 2010/31 |
URI: | http://hdl.handle.net/2445/116762 |
Appears in Collections: | IEB (Institut d’Economia de Barcelona) – Working Papers |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
IEB10-31_Gerritse.pdf | 498.13 kB | Adobe PDF | View/Open |
This item is licensed under a
Creative Commons License