Public Expenditure and Economic Geography
AbstractAdding 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 InfoArticle provided by ENSAE in its journal Annals of Economics and Statistics.
Volume (Year): (1997)
Issue (Month): 47 ()
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- Luca Antonio Ricci, 1998.
"Uncertainty, Flexible Exchange Rates, and Agglomeration,"
IMF Working Papers
98/9, International Monetary Fund.
- Luca Ricci, 2006. "Uncertainty, Flexible Exchange Rates, and Agglomeration," Open Economies Review, Springer, vol. 17(2), pages 197-219, April.
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