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Infrastructure Provision And Locational Efficiency In A Federation: A Numerical Approach

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ABSTRACT How do different strategies of infrastructure provision affect the spatial distribution of firms and households in a federation? The current article analyzes three polar cases: in the first case there is no publicly provided infrastructure at all. The second case is the case of uniform provision, i.e., a federal government provides the same amount of infrastructure to each region, regardless of the initial spatial distribution of firms, households, and tax revenues. The third strategy is decentralized provision, i.e., infrastructure is provided according to regional tax revenues. It is shown that the superior strategy depends on the initial distribution of firms among regions which may reflect historical accidence.

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  • Dirk Dohse, 1998. "Infrastructure Provision And Locational Efficiency In A Federation: A Numerical Approach," Papers in Regional Science, Wiley Blackwell, vol. 77(3), pages 241-263, July.
    • Handle: RePEc:bla:presci:v:77:y:1998:i:3:p:241-263
    DOI: 10.1111/j.1435-5597.1998.tb00716.x
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    Cited by:

    1. David B Audretsch & Dirk Christian Dohse & João Pereira dos Santos, 2020. "The effects of highway tolls on private business activity—results from a natural experiment [Is public expenditure productive?]," Journal of Economic Geography, Oxford University Press, vol. 20(6), pages 1331-1357.
    2. C. Dembour, 2008. "Competition for Business Location: A Survey," Journal of Industry, Competition and Trade, Springer, vol. 8(2), pages 89-111, June.
    3. Dohse, Dirk, 2002. "The changing role of the regions in German technology policy," ERSA conference papers ersa02p023, European Regional Science Association.
    4. Daniel Shefer, 2011. "The Center-periphery Dilemma and the Issue of Equity in Regional Development," ERSA conference papers ersa11p1192, European Regional Science Association.
    5. Audretsch, David B. & Dohse, Dirk & dos Santos, João Pereira, 2017. "Do toll-free highways foster firm formation and employment growth? Results from a quasi-natural experiment," Kiel Working Papers 2080, Kiel Institute for the World Economy (IfW Kiel).
    6. repec:rre:publsh:v:39:y:2009:i:1:p:85-98 is not listed on IDEAS
    7. Miki Malul & Raphael Bar-El, 2009. "The Gap between Free Market and Social Optimum in the Location Decision of Economic Activity," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2045-2059, September.
    8. Sichelschmidt, H., 1999. "The EU programme "trans-European networks"--a critical assessment," Transport Policy, Elsevier, vol. 6(3), pages 169-181, July.

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