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agglomeration of production into a manufacturing core and agricultural periphery, creating regional income differentials. We examine … thus higher equilibrium taxes. Moreover, economic integration must increase taxes when the forces of agglomeration are the …
Persistent link: https://www.econbiz.de/10005556493
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 …
Persistent link: https://www.econbiz.de/10010294675
continental geography of specialization. We use an Economic Geography model of industrial agglomeration to show how fiscal …
Persistent link: https://www.econbiz.de/10005102658
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 …
Persistent link: https://www.econbiz.de/10005163032
and even small relative concerns destabilize the full agglomeration equilibrium, which is stable in the Krugman model. …
Persistent link: https://www.econbiz.de/10011123979
regarding the effects of the relative strength of the dispersion force to the agglomeration force on the equilibrium outcomes of …
Persistent link: https://www.econbiz.de/10013119673
This study quantifies the uneven welfare gains from trade between firm owners and workers in a multi-country model of monopolistic competition under a demand system of constant elasticity of substitution (CES). An agent decides to start up her own firm or to be employed as a worker according to...
Persistent link: https://www.econbiz.de/10012963095
This paper aims to fill the gap between theoretical and empirical studies of home market effects (HMEs). On one hand, empirical studies on the price aspect of HMEs -- that wages are higher in larger markets -- are supportive, but studies on the quantity aspect -- that the firm share in the...
Persistent link: https://www.econbiz.de/10013040277
historically emerged as the core. The agglomeration rent which accrues to the mobile factor gives unions and governments in the …
Persistent link: https://www.econbiz.de/10013319979
To explain the spatial selection of vertically di fferentiated firms, this paper incorporates heterogeneous preferences and heterogeneous quality productions into a framework of the footloose capital model, in which labor is immobile. In two regions with identical population size, when trade...
Persistent link: https://www.econbiz.de/10014176697