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Inefficient lock-in and subsidy competition

Borck, Rainald; Koh, Hyun-Ju; Pflüger, Michael - 2009

This paper shows that subsidy competition may be efficiency enhancing. We model a subsidy game among two asymmetric regions in a new trade model, where capital can freely move among regions, but capital rewards are repatriated. We study subsidy competition, starting from an equilibrium where the...

Persistent link: https://www.econbiz.de/10003843420

Differential labor mobility, agglomeration, and skill-biased migration policies

Russek, Stephan - 2009

The paper analyzes the impact of skill-biased migration policies under the economics of agglomeration. It therefore develops an agglomeration model with two types of mobile worker who are heterogeneous and differ both within and between skill groups with respect to their migration propensity. On...

Persistent link: https://www.econbiz.de/10003843425

Heterogeneous Labor Mobility, Capital Flow, and Subsidy Competition

Chen, Ching-mu - 2011

To examine the effects of heterogeneous labor mobility on the distribution of industries and analyze the subsidy policy for attracting firms, this paper develops an analytically solvable new economic geography model, which incorporates heterogeneous locational preferences and an intra-industry...

Persistent link: https://www.econbiz.de/10013119673

Estimating Disparity in Welfare Gains from Trade between Firm Owners and Workers

Chen, Ching-mu - 2017

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

European Integration and Domestic Regions : A Numerical Simulation Analysis

Melchior, Arne - 2009

Does European economic integration create more inequality between domestic regions, or is the opposite true? We show that a general answer to this question does not exist, and that the outcome depends on the liberalization scenario. In order to examine the impact of European and international...

Persistent link: https://www.econbiz.de/10013160410

Regional Inequality and Product Variety

Behrens, Kristian - 2006

We investigate how differences in set-up costs of various types affect the trade-off between global efficiency and spatial equity and show that the standard assumption of symmetry in fixed costs masks the existence of an interesting effect: the range of available varieties varies depends on the...

Persistent link: https://www.econbiz.de/10012734366

Fiscal Competition, Convergence and Agglomeration

Fenge, Robert - 2007

This paper analyzes the impact of fiscal competition through infrastructure in a New Economic Geography framework. It is shown that regional competition leads to convergence if the trade costs are high but induces divergence if trade cost have fallen below a certain value. Moreover, fiscal...

Persistent link: https://www.econbiz.de/10012776022

Estimating Border Effects : The Impact of Spatial Aggregation

Coughlin, Cletus C. - 2019

estimation can still produce large border effects. We test our theory with trade flows at the level of U.S. states. Our results … this paper, we investigate the sensitivity of standard gravity estimation to spatial aggregation. We build a model in which … domestic and international trade. Our theory shows that aggregation leads to border effect heterogeneity. Larger regions or …

Persistent link: https://www.econbiz.de/10012903440

The Alibaba Effect : Spatial Consumption Inequality and the Welfare Gains from e-Commerce

Fan, Jingting - 2018

Domestic trade costs imply more restricted access to consumption goods in small and remote cities. By eliminating the fixed costs of firm entry and reducing the effects of distance on trade costs, e-commerce can disproportionately improve these cities' access to varieties of consumption goods...

Persistent link: https://www.econbiz.de/10012936645

Inefficient Lock-In and Subsidy Competition

Borck, Rainald - 2009

Persistent link: https://www.econbiz.de/10012764278