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This paper examines the optimal location-based redistribution policy and shows that adjustment for local price levels is occasionally optimal, but never for the reasons suggested by the popular press. First, the existence of a spatial equilibrium suggests that utility levels will be equalized...
Persistent link: https://www.econbiz.de/10012473250
This paper examines the optimal location-based redistribution policy and shows that adjustment for local price levels is occasionally optimal, but never for the reasons suggested by the popular press. First, the existence of a spatial equilibrium suggests that utility levels will be equalized...
Persistent link: https://www.econbiz.de/10013232727
Persistent link: https://www.econbiz.de/10001794348
Many local governments offer rich tax deals to firms to get these firms to come to their cities. In this brief essay, I review the economics of location-based tax incentives. I first address the positive economics of these incentives and present five theories of why these tax incentives occur. I...
Persistent link: https://www.econbiz.de/10014123352
; clearly, this is a restrictive assumption. We developed a theory called sign-equivalent transformation (SET) underlying the … mathematical structure behind a system of equations defining the Nash equilibrium. By applying our theory, we reveal that many … best-response potentials after appropriate restructuring of equilibrium conditions using SET. Thus, through our theory, we …
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