Two recent articles, Legros & Matthews (1993) and Vislie (1994), show that in a non-cooperative production game with stricly complementary (non-observable) inputs, interpretd as effort levels, there exists a linear budget-balancing sharing rule that implements the efficient effort vector in Nash...

This paper was inspired by the renaissance that industrial localisation and localised external economies have experienced during the last years. We seek to elucidate the relevance of the theories on localisation and external economies for those that have indeed developed them - the economists....

The literature on the average and marginal cost of public funds and the average and marginal excess burden is presently a very rich one. A problem in this literature, is that a whole range of alternative measures are interpreted as representing the cost from collecting tax revenues. This paper...

This paper studies the effects of changes in transportation costs on industrialization, inter-regional trade and migration.

Network externalities describe the phenomenon that a good becomes more valuable to each user the more other consumers use the same of a compatible product. Whereas most of the recent literature on network effects has focused on the adoption of products, this paper shows that network...

In this paper we analyse vertical industry linkages and the extent to which these work as channels for externalities. First, activity based externalities stemming from output growth and output level in vertically linked industries are tested for. Second, we aim at revealing the importance of a...

This paper studies strategies pursued by banks in order to differentiate their services from those of their rivals. In that way competition among banks is softened. More specifically we analyze if the bank size, the banks ability to avoid losses,and its capital ratio can be used as strategic...