Anti-agglomeration Subsidies with Heterogeneous Firms
Toshihiro Okubo ()
No 2011-012, Keio/Kyoto Joint Global COE Discussion Paper Series from Keio/Kyoto Joint Global COE Program
This paper studies anti-agglomeration subsidies in a core-periphery setting when firms are heterogeneous in labour productivity, focusing on the effects of a relocation subsidy on firm location in various tax-financing schemes (local versus global). We discuss how a subsidy can enhance welfare and average productivity in the periphery. As a result we find that a subsidy proportional to profits can induce the relocation of high productivity firms and thus increase welfare and average productivity in the periphery. Concerning tax-financing schemes, a local tax financing scheme has an optimal level of subsidy.
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Journal Article: ANTIAGGLOMERATION SUBSIDIES WITH HETEROGENEOUS FIRMS (2012)
Working Paper: Anti-agglomeration Subsidies with Heterogeneous Firms (2011)
Working Paper: Anti-agglomeration Subsidies with Heterogeneous Firms (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:kei:dpaper:2011-012
Access Statistics for this paper
More papers in Keio/Kyoto Joint Global COE Discussion Paper Series from Keio/Kyoto Joint Global COE Program Contact information at EDIRC.
Series data maintained by Global COE Program Office ().