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We study the impact of tax competition on equilibrium taxes and welfare, focusing on the jurisdictional fragmentation of federations. In a representative-agent model of fiscal federalism, fragmentation among jurisdictions with benevolent tax-setting authorities unambiguously reduces welfare. If,...
Persistent link: https://www.econbiz.de/10005666467
because of stochastic shocks to commuting decisions, which yield a gravity equation for commuting flows. To structurally …
Persistent link: https://www.econbiz.de/10011083978
In this Paper survey some recent developments in urban labour economic theory. We first present a benchmark model in … which firms set efficiency wages to prevent shirking and to compensate workers for commuting. We show that both wages and … unemployment depend on commuting costs, and that housing prices as well as location are based on workers’ wages. We then extend the …
Persistent link: https://www.econbiz.de/10005666637
We study the effects of a decrease in trade costs on the spatial distribution of industry in a multi-regional economy, when a rise in the regional population of workers generates higher urban costs. When the number of cities is unaffected by falling trade costs, small cities become smaller for...
Persistent link: https://www.econbiz.de/10005123704
Theory is divided on whether falling transport costs lead to more or less spatial concentration of economic activity …
Persistent link: https://www.econbiz.de/10005067549
This paper investigates how the measures of genetic distance between populations, which have been used in anthropology and historical linguistics, can be used in economics. What does the correlation between genetic distance and economic variables mean? Using the measure of genetic distance, a...
Persistent link: https://www.econbiz.de/10005067648
While transport costs have fallen, the empirical evidence also points at rising total trade costs. In a model of industry location with endogenous transaction costs, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade.
Persistent link: https://www.econbiz.de/10005504426
commuting and shipping patterns. We show that policies favoring the decentralization of jobs may be more environmentally …
Persistent link: https://www.econbiz.de/10008867493
We provide evidence for the effects of changes in transport costs, international trade exposure, and input-output linkages on the geographical concentration of Canadian manufacturing industries. Increasing transport costs, stronger import competition, and the spreading out of upstream suppliers...
Persistent link: https://www.econbiz.de/10011145427
We estimate the effect of interstate highways on the level and composition of trade for us cities. Highways within cities have a large effect on the weight of city exports with an elasticity of approximately 0.5. We find little effect of highways on the total value of exports. Consistent with...
Persistent link: https://www.econbiz.de/10011083314