We investigate the impact of local agglomeration economies on household portfolio choice. Using detailed location and employment data from two U.S. household surveys, we document that individuals who work in locally agglomerated industries are more likely to invest in risky assets. This pattern...

What is region? From an economic point of view, a region is a unit in which capital and labour move freely and goods and services are totally open to trade with other regions without any frontiers or limitations. The openness of the regions and their interaction with other regions are their main...

The paper asks whether subsidies aiming to redistribute economic activity across regions can be justified with the welfare argument. Moreover, different tax systems are compared with respect to the size of the subsidy needed for achieving a certain spatial distribution of economic activity, and...