competition models. The agglomeration rent which accrues to the mobile factor in the core region can be taxed. Moreover, a tax … addition to the 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 …

efficiency arises since the efficient distribution of regional infrastructure requires full agglomeration for sufficiently low …

Agglomeration tendencies of industrial firms significantly affect the nature of tax competition. This paper analyzes … attract all the firms when trade costs are low enough to make agglomeration forces dominant. If policies are not credible …

This paper analyzes competition for capital between welfare-maximizing governments in a framework with agglomeration … associated cost is shifted to foreign consumers. -- tax competition ; trade unions ; agglomeration …