Exbrayat, Nelly; Gaigné, Carl; Riou, Stéphane - In: Recherches économiques de Louvain 75 (2009) 4, pp. 407-423
We build a model of trade and location with two countries which differ with respect to their level of productivity. Public spending has two possible allocations: a direct subsidy to immobile households or a wage subsidy to mobile firms. We show that firms receive a lower net of tax subsidy in...
