In this paper we examine the effect of public investment on the regional economies of Japan. The efficient policy for regional allocation of public capital is to invest in highly productive regions, whereas the actual policy pursues equity goals by allocating more public investment to depressed...

A large and growing body of work in political science and economics is concerned with explaining ‘regional favouritism’ in the geographical allocation of goods and services by governments. In such empirical studies of distributive politics (specifically pork barrel spending by governments)...

How does the misallocation of complementary public capital affect the spatial organization of economic activity To answer this question, this paper endogenizes the government's decision to invest in the transport and electricity networks. A novel multi-sector quantitative spatial equilibrium...