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We develop a model with two asymmetric countries. Firms choose the number and the location of plants that they operate. The production of each firm increases when trade costs fall. The fall also induces multinationals to repatriate their production into a single country, which is likely to be...
Persistent link: https://www.econbiz.de/10012776607
key insight that emerges is that the interaction between agglomeration economies and comparative advantage involves a … comparative advantage in sectors governed by this force whilst the impact of agglomeration economies is enhanced by trade cost … small economies is not only shaped by the primitives that determine agglomeration economies and comparative advantage but …
Persistent link: https://www.econbiz.de/10012981495
This paper provides a simple theory of geographical mobility which simultaneously explainspeople’s choice of residences in space and the location of industry. Residences are chosenon the basis of the utility which mobile households obtain across locations...
Persistent link: https://www.econbiz.de/10005862705
Within an efficiency wage framework, we study the effects of two revenue-neutral tax reforms that change the progressivity of the labour tax system. A revenue-neutral increase in both the wage tax and tax exemption and a revenue-neutral change in the composition of labour taxation towards the...
Persistent link: https://www.econbiz.de/10013316969
Models of the new economic geography share a number of common conclusions, but also exhibit notable differences, in particular with respect to the shape of the location pattern and the efficiency of the market equilibrium. This reflects the fact that these models rely heavily on specific...
Persistent link: https://www.econbiz.de/10013317473
The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational … and easily reversible transition from symmetry to agglomeration …
Persistent link: https://www.econbiz.de/10013324862
This paper argues that UN military interventions are geographically biased. For every 1,000 kilometers of distance from the three Western permanent UNSC members (France, UK, US), the probability of a UN military intervention decreases by 4 percent. We are able to rule out several alternative...
Persistent link: https://www.econbiz.de/10013056248
that industrial agglomeration improves the quality of the firmworkermatching process. Our method makes use of recent …
Persistent link: https://www.econbiz.de/10009522215
cities toughen competition, allowing only the most productive to survive) and agglomeration economies (larger cities promote … a generalised version of a tractable firm selection model and a standard model of agglomeration. Stronger selection in … larger cities left-truncates the productivity distribution whereas stronger agglomeration right-shifts and dilates the …
Persistent link: https://www.econbiz.de/10013107198
We analyze the first data set on consistently defined functional urban areas in Europe and compare the European to the US urban system. City sizes in Europe do not follow a power law: the largest cities are "too small" to follow Zipf's law
Persistent link: https://www.econbiz.de/10013023013