Tax competition with spillover public goods in a median location model
Jyh-Fa Tsai ()
Additional contact information
Jyh-Fa Tsai: National Taipei University
Asia-Pacific Journal of Regional Science, 2019, vol. 3, issue 3, No 10, 862 pages
Abstract This study explores the role of median location in a core-periphery model (using a footloose entrepreneur version) with public goods. Taxation for each region is used for producing public good with spillovers effect among regions. Two kinds of taxation are considered. One is the Nash tax with the goal of each region’s utility. The other is the optimal taxation with the goal of the sum of each region’s utility. Two kinds of location configurations for three regions are considered: one is an equilateral triangle (with no median location). The other is the configuration in which three points are equidistant between two adjacent points on a line (with median region). The results show that the Nash tax rate of median region will be smaller than that of non-median region for a symmetric distribution of firms. On the contrary, the optimal tax of median region will be higher than that of non-median region.
Keywords: Agglomeration; Public goods; Median location; Economic geography; Tax competition; Optimal taxation (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s41685-019-00139-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:apjors:v:3:y:2019:i:3:d:10.1007_s41685-019-00139-2
Ordering information: This journal article can be ordered from
https://www.springer ... cience/journal/41685
Access Statistics for this article
Asia-Pacific Journal of Regional Science is currently edited by Yoshiro Higano
More articles in Asia-Pacific Journal of Regional Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().