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Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/119275
Tax differentials and agglomeration economies in intraregional firm location
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Abstract
This paper analyses empirically how differences in local taxes affect the intraregional location of new manufacturing plants. These effects are examined within the random profit maximization framework while accounting for the presence of different types of agglomeration economies (localization/ urbanization/ Jacobs’ economies) at the municipal level. We look at the location decision of more than 10,000 establishments locating between 1996 and 2003 across more than 400 municipalities in Catalonia, a Spanish region. It is necessary to restrict the choice set to the local labor market and, above all, to control for agglomeration economies so as to identify the effects of taxes on the location of new establishments.
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JOFRE MONSENY, Jordi and SOLÉ OLLÉ, Albert. Tax differentials and agglomeration economies in intraregional firm location. IEB Working Paper 2007/02. [consulted: 18 of June of 2026]. Available at: https://hdl.handle.net/2445/119275