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Public Expenditure and Economic Geography

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Author Info

  • Federico TRIONFETTI

Abstract

Adding public expenditure to the core-periphery model creates a linkage that can override the agglomeration forces. Consequently, the equilibrium distribution of economic activity depends upon the nature and allocation of public expenditure. Appropriate public expenditure eliminates the possibility that economic integration results in total agglomeration of manufacturing. A corollary is that (contrary to the core-periphery model) location matters even in the absence of transport costs. Tied aid, and international transfers are also considered.

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Bibliographic Info

Article provided by ENSAE in its journal Annals of Economics and Statistics.

Volume (Year): (1997)
Issue (Month): 47 ()
Pages: 101-120

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Handle: RePEc:adr:anecst:y:1997:i:47:p:06

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Cited by:
  1. Luca Antonio Ricci, 1998. "Uncertainty, Flexible Exchange Rates, and Agglomeration," IMF Working Papers 98/9, International Monetary Fund.
  2. Sara Biancini, 2008. "Regulating National Firms in a Common Market," CESifo Working Paper Series 2209, CESifo Group Munich.
  3. Rhydian James & Peter Midmore & Dennis Thomas, 2012. "Public Sector Size and Peripherality," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(4), pages 447-460, December.
  4. Cécile AUBERT & Jérôme POUYET, 2004. "Competition policy, regulation and the institutional design of industry supervision," Discussion Papers (REL - Recherches Economiques de Louvain) 2004022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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