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The Public Sector and Core-Periphery Models

Author

Listed:
  • Luis Fernando Lanaspa

    (Faculty of Economics and Business Studies, University of Zaragoza, Gran Via 2, 50005 Zaragoza, Spain, Ilanas@posta.unizar.es)

  • Fernando Pueyo

    (Faculty of Economics and Business Studies, University of Zaragoza, Gran Via 2, 50005 Zaragoza, Spain, fpueyo@posta.unizar.es)

  • Fernando Sanz

    (Faculty of Economics and Business Studies, University of Zaragoza, Gran Via 2, 50005 Zaragoza, Spain, fsanz@posta.unizar.es)

Abstract

In this paper, we present an extension to Krugman's core-periphery model-namely, the introduction of the public sector as a new economic agent. There are two main results: first, we demonstrate theoretically that regions with a lower tax-burden in net terms, in the sense of having lower taxes and/or higher levels of public efficiency in their management, offer greater incentives to attract economic activity; secondly, the influence of the transport costs on the equilibria is not monotonous, as under the original approach, but now depends on its size, reflecting a strong interdependence between all the parameters of the model.

Suggested Citation

  • Luis Fernando Lanaspa & Fernando Pueyo & Fernando Sanz, 2001. "The Public Sector and Core-Periphery Models," Urban Studies, Urban Studies Journal Limited, vol. 38(10), pages 1639-1649, September.
    • Handle: RePEc:sae:urbstu:v:38:y:2001:i:10:p:1639-1649
    DOI: 10.1080/00420980120084796
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    References listed on IDEAS

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    Cited by:

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    2. Raphael BAR-EL & Dafna SCHWARTZ, 2003. "Economic Growth, Inequality And Spatial Demographic Distribution: A Brazilian Case," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 18, pages 147-170.
    3. Ugo Fratesi, 2008. "Regional policy from a supra-regional perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 681-703, September.
    4. Nir Kaplan & Itzhak Omer, 2022. "Multiscale Accessibility—A New Perspective of Space Structuration," Sustainability, MDPI, vol. 14(9), pages 1-19, April.
    5. 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.

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