Agglomeration and Returns to Scale with Capital and Public Goods in a Multi-Regional EconomyInternational Economic Journal, 2009, vol. 23, issue 1, pages 81-109 Abstract: This paper develops a multi-regional growth model with amenity, capital accumulation and regional public goods. The economy consists of any number of regions and each region consists of the industrial sector and public sector. The industrial sector provides goods in perfectly competitive markets. The public sector, which is financed by the regional government's tax incomes, supplies regional public goods. The public goods affect both firms and households. We show the existence of a unique equilibrium in the dynamic system. The comparative statics analysis also provides some important insights. For instance, if environmental improvement occurs in the advanced (less advanced) region, the national output rises (falls). If a region has a high rate of technological change and the other region remains technologically stationary, economic activities and labor force tend to be located in the technologically advancing region. If the propensity to save is increased, national output is increased and more people will be located in the technologically advanced region. Keywords: Multi-region growth; economic geography; capital accumulation; endogenous amenity; public goods (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:taf:intecj:v:23:y:2009:i:1:p:81-109 Ordering information: This journal article can be ordered from Access Statistics for this article International Economic Journal is edited by Jaymin Lee More articles in International Economic Journal from Korean International Economic Association |
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