Agglomeration Effects and the Competition for Firms

Robin Boadway, Katherine Cuff and Nicolas Marceau

International Tax and Public Finance, 2004, vol. 11, issue 5, 623-645

Abstract: A two-region economy consists of a given but different number of immobile workers in each region, and a given number of mobile firms. Firms create jobs where they locate, but there is frictional unemployment. Two sorts of agglomeration effects arise: those from economies of scale in matching, and those from production economies external to the firm. Regions may either be part of a unitary state in which case all regional policies are decided by the central government, or they may be part of a federal state in which case some policies are determined by the regional governments. We characterize the resource allocations in both a unitary and a federal state, and identify the set of instruments that are required to replicate the social optimum in each state.

Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
http://journals.kluweronline.com/issn/0927-5940/contents (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Agglomeration Effects and the Competition for Firms (2003)
Working Paper: AGGLOMERATION EFFECTS AND THE COMPETITION FOR FIRMS (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:itaxpf:v:11:y:2004:i:5:p:623-645

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().