LANASPA, Luis; PUEYO, Fernando; SANZ, Fernando - In: Annales d'Economie et de Statistique (2004) 73, pp. 181-197
In this paper we insert the public sector into Krugman's seminal core-periphery model, focusing on the provision of public services financed through taxes on rents. Since public services are an element that attracts economic activity, while taxes have the opposite effect, we find that the net...