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Agglomeration and Tax Competition
Borck, Rainald; Pflüger, Michael - Institute for the Study of Labor (IZA) - 2004
competition models. The agglomeration rent which accrues to the mobile factor in the core region can be taxed. Moreover, a tax … addition to core-periphery equilibria, exhibits stable equilibria with partial agglomeration. We show that a tax differential … may arise as an equilibrium of the tax game even when there is only partial agglomeration and the mobile factor does not …
Persistent link: https://www.econbiz.de/10005763719
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A Simple Theory of Industry Location and Residence Choice
Borck, Rainald; Pflüger, Michael; Wrede, Matthias - Institute for the Study of Labor (IZA) - 2007
This paper provides a simple theory of geographical mobility which simultaneously explains people’s choice of residences in space and the location of industry. Residences are chosen on the basis of the utility which mobile households obtain across locations. The spatial pattern of industry is...
Persistent link: https://www.econbiz.de/10005762313
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Inefficient lock-in and subsidy competition
Borck, Rainald; Koh, Hyun-Ju; Pflüger, Michael - Wirtschafts- und Sozialwissenschaftliche Fakultät, … - 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/10005227721