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agglomeration process, whereas the home market magnification effect [Krugman (Journal of Political Economy, 99, 483-499)] becomes …
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upon the firms' risk preferences. As a result regional agglomeration of investments may occur although the objective of the … ; regional policy ; agglomeration ; two-moment decision model …
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The extent and direction of causation between micro volatility and business cycles are debated. We examine, empirically and theoretically, the source and effects of fluctuations in the dispersion of producer-level sales and production over the business cycle. On the theoretical side, we study...
Persistent link: https://www.econbiz.de/10013044944
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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/10013319463
We present an analysis of interregional consumption risk sharing in Russia between 1999 and 2009 using novel estimation methods. In addition to standard fixed effects panel estimations, we use system and difference GMM estimators to reflect time dynamic properties and possible endogeneity...
Persistent link: https://www.econbiz.de/10011875401
This paper analyzes the impact of ethnic heterogeneity and military conflict on the degree of regional consumption risk-sharing in Ukraine. Ethnicity and violent conflicts can influence risk-sharing e.g. through social capital, ethnic fractionalization, migration, and remittances. The sample...
Persistent link: https://www.econbiz.de/10012315041