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Regional allocation of public investment with transfer policy and agglomeration

Author

Listed:
  • Akiyoshi Furukawa

    (Department of Economics, Chukyo University)

Abstract

This paper analyses the allocation of public investment across heterogeneous regions when the government can use a regional transfer policy and individuals can migrate across regions. The government should choose the same amount of public investment regardless of the taxation policy. The government should use taxation to concentrate individuals in the region in order to utilize scale economies. To control regional agglomeration, the government should use taxation, not the public investment.

Suggested Citation

  • Akiyoshi Furukawa, 2012. "Regional allocation of public investment with transfer policy and agglomeration," Economics Bulletin, AccessEcon, vol. 32(3), pages 1865-1872.
    • Handle: RePEc:ebl:ecbull:eb-12-00294
    as

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    References listed on IDEAS

    as
    1. Caminal, Ramon, 2004. "Personal redistribution and the regional allocation of public investment," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 55-69, January.
    2. Ihara, Ryusuke, 2008. "Transport costs, capital mobility and the provision of local public goods," Regional Science and Urban Economics, Elsevier, vol. 38(1), pages 70-80, January.
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    More about this item

    Keywords

    Agglomeration; Redistribution; Public investment;
    All these keywords.

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • D3 - Microeconomics - - Distribution

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