Lanaspa, Luis Fernando; Pueyo, Fernando; Sanz, Fernando - In: Urban Studies 38 (2001) 10, pp. 1639-1649
In this paper, we present an extension to Krugman's core-periphery model-namely, the introduction of the public sector as a new economic agent. There are two main results: first, we demonstrate theoretically that regions with a lower tax-burden in net terms, in the sense of having lower taxes...