Anti-agglomeration Subsidies with Heterogeneous Firms

Toshihiro Okubo

No 16-2006, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies

Abstract: This paper studies anti-agglomeration subsidies in a core-periphery setting when firms are heterogeneous in terms of efficiency, focusing on the positive and normative effects of various subsidy forms (specific versus proportional), various tax-financing schemes (local versus global) and various capital-labour endowment ratios (symmetric versus asymmetric). Anti-agglomeration subsidies are shown to have ambiguous welfare effects and the determinants of the sign and size of the welfare impact are characterised.

Keywords: : heterogeneous firms; economic geography; relocation subsidy; core-periphery structure; global/local tax-financing scheme. (search for similar items in EconPapers)
JEL-codes: H32 P16 (search for similar items in EconPapers)
Pages: 28
Date: 2006-03
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (2)

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Related works:
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 (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:gii:giihei:heiwp16-2006

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