these - and this is shown to be true also for perfectly coordinated tax increases. It is also shown that an agglomeration is … agglomeration for some levels of taxes. …

cluster together, turning location into a self-reinforcing process. Agglomeration raises the price of immobile local factors …

regions increases the agglomeration incentive of skilled labor. Depending on the level of unskilled labor mobility, the … agglomeration is the only stable outcome. When trade costs are high, skilled and unskilled labor migration reinforce each other … leading to agglomeration of both types of labor in the same region. For lower levels of trade cost, unskilled labor returns to …

regions increases the agglomeration incentive of skilled labor. Depending on the level of unskilled labor mobility, the … agglomeration is the only stable outcome. When trade costs are high, skilled and unskilled labor migration reinforce each other … leading to agglomeration of both types of labor in the same region. For lower levels of trade cost, unskilled labor returns to …

and even small relative concerns destabilize the full agglomeration equilibrium, which is stable in the Krugman model. …

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 …

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 …

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 …

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 …

key insight that emerges is that the interaction between agglomeration economies and comparative advantage involves a … comparative advantage in sectors governed by this force whilst the impact of agglomeration economies is enhanced by trade cost … small economies is not only shaped by the primitives that determine agglomeration economies and comparative advantage but …