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Rauscher, Michael - 2014

The paper combines an economic-geography model of agglomeration and periphery with a model of species diversity and looks at optimal policies of biodiversity conservation. The subject of the paper is natural biodiversity, which is inevitably impaired by anthropogenic impact. Thus, the economic...

Persistent link: https://www.econbiz.de/10012751891

Fiscal Competition, Convergence and Agglomeration

Fenge, Robert - 2007

This paper analyzes the impact of fiscal competition through infrastructure in a New Economic Geography framework. It is shown that regional competition leads to convergence if the trade costs are high but induces divergence if trade cost have fallen below a certain value. Moreover, fiscal...

Persistent link: https://www.econbiz.de/10012776022

von Ehrlich, Maximilian; Seidel, Tobias - 2021

In contrast to what several papers have argued recently, we show that firm heterogeneity fosters agglomeration of economic activity. If firms are more similar with respect to their total factor productivity, each company faces a lower propensity to export. This renders the home market more...

Persistent link: https://www.econbiz.de/10013315825

Inefficient Lock-In and Subsidy Competition

Borck, Rainald - 2009

This paper shows that subsidy competition may be efficiency enhancing. We model a subsidy game among two asymmetric regions in a new trade model, where capital can freely move among regions, but capital rewards are repatriated. We study subsidy competition, starting from an equilibrium where the...

Persistent link: https://www.econbiz.de/10012764278

Intra-Regional Tax Competition and Economic Geography

Hühnerbein, Ossip Robert - 2007

We extent a solvable version of the core-periphery agglomeration model to four countries located in two regions. The paper shows that there might still be a race to the bottom in capital income tax rates despite agglomeration rents earned by the mobile factor. We find that intra-regional tax...

Persistent link: https://www.econbiz.de/10012775852

The Empirical Relevance of the New Economic Geography: Testing for a Spatial Wage Structure in Germany

Brakman, Steven; Garretsen, Harry; Schramm, Marc - CESifo - 2000

In this paper we want to shed some light on the empirical relevance of the new economic geography. Using one of the central features of the core new economic geography models, namely that wages have the tendency to fall the further one moves away from centres of economic activity, we investigate...

Persistent link: https://www.econbiz.de/10005196275

Multimarket Linkages, Cartel Discipline and Trade Costs

Agnosteva, Delina - 2018

We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....

Persistent link: https://www.econbiz.de/10012926563

Home Market Effects and the Single-Sector Melitz Model

Felbermayr, Gabriel - 2012

Increasing-returns-to-scale imperfect competition trade models predict a more than proportionate relationship between the larger country's share in world endowments and its share in producing firms: the so called home market effect (HME). While this result plays a key role in empirical testing,...

Persistent link: https://www.econbiz.de/10013112599

Ease vs. Noise : On the Conflicting Effects of Transportation Infrastructure

Ahlfeldt, Gabriel M. - 2016

Many transport technologies cause a “not‐in‐my‐backyard” (NIMBY) reaction of locals in that they often oppose the nearby location of necessary infrastructure despite benefiting from greater mobility. We employ quasi‐experimental research methods to disentangle the offsetting noise...

Persistent link: https://www.econbiz.de/10012981298

Spatial Diffusion of Economic Shocks in Networks

Amarasinghe, Ashani - 2018

networks in the spatial diffusion of local economic shocks. We develop a network model that shows how a district's level of … prosperity is related to its position in the network. The network model's first-order conditions are used to derive an … underlying network structure can inform us about the potential gains from policies that increase economic activity in specific …

Persistent link: https://www.econbiz.de/10012916562