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solve analytically. We use the modified model to analyse the tendencies for geographical agglomeration of manufacturing … manufacturing tends to agglomerate for low trade costs. In the physical capital case, on the contrary, agglomeration will not occur …
Persistent link: https://www.econbiz.de/10005067355
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
historically emerged as the core. The agglomeration rent which accrues to the mobile factor gives unions and governments in the …
Persistent link: https://www.econbiz.de/10005703558
This Paper compares the effect of economic integration on industry location for a small country that goes ahead with an integration process, such as the European, and a country that stays out. Theoretical results, derived from a three-region new economic geography model, are compared to stylized...
Persistent link: https://www.econbiz.de/10005123822
crucially on the specific details of the projects and the specific sources of agglomeration economies they affect. Second …
Persistent link: https://www.econbiz.de/10005012081
This paper analyses industrial policy in a high wage open economy hosting an agglomeration consisting of vertically … setting. However the restriction that the agglomeration should be sustained may restrict the otherwise welfare maximising …
Persistent link: https://www.econbiz.de/10005190642
The present paper focuses on sorting as a mechanism behind the well-established fact that there is a central region productivity premium. Using a model of heterogeneous firms that can move between regions, Baldwin and Okubo (2006) show how more productive firms sort themselves to the large core...
Persistent link: https://www.econbiz.de/10008784724
This paper compares two policies: trade cost reduction and firm relocation cost reduction using a three-country version of a heterogeneous-firms economic geography model, where the three countries have different market (population) size. We show how the effects of the two policies differ, in...
Persistent link: https://www.econbiz.de/10008784755
This paper compares two policies: trade cost reduction and firm relocation cost reduction using a three-country version of a heterogeneous-firms geography and trade model, where the three countries have different market (population) sizes. We show how the effects of the two policies differ, in...
Persistent link: https://www.econbiz.de/10011048651
The present paper focuses on spatial sorting as a mechanism behind the well-established fact that there is a central region productivity premium. Using a model of heterogeneous firms that can move between regions, Baldwin and Okubo (2006) show how more productive firms sort themselves to the...
Persistent link: https://www.econbiz.de/10010785296