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Taxation on Agglomeration

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Author Info

  • Commendatore, P.

    (University of Naples)

  • Kubin, I.

    ()
    (University of Vienna)

Abstract

Recently, issues of international taxation have also been analysed from a New Economic Geography perspective. These discussions show that adding agglomerative forces can change the results considerably. In the paper, we introduce explicitly taxation and public expenditures into a Footloose Capital Model and investigate the local and global dynamic implications of such a public policy for industry agglomeration. It turns out that agglomeration can be highly sensitive wrt initial conditions and/or parameters and that these dynamic patterns are surprisingly robust wrt to the taxation principle.

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File URL: http://www1.fee.uva.nl/cendef/publications/papers/DIT_Final.pdf
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Bibliographic Info

Paper provided by Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance in its series CeNDEF Working Papers with number 06-08.

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Date of creation: 2006
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Handle: RePEc:ams:ndfwpp:06-08

Contact details of provider:
Postal: Dept. of Economics and Econometrics, Universiteit van Amsterdam, Roetersstraat 11, NL - 1018 WB Amsterdam, The Netherlands
Phone: + 31 20 525 52 58
Fax: + 31 20 525 52 83
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Web page: http://www.fee.uva.nl/cendef/
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References

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  1. M Currie & I Kubin, 2003. "Chaos in the Core-Periphery Model," The School of Economics Discussion Paper Series 0314, Economics, The University of Manchester.
  2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  3. Richard E. Baldwin & Paul Krugman, 2002. "Agglomeration, Integration and Tax Harmonization," NBER Working Papers 9290, National Bureau of Economic Research, Inc.
  4. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
  5. P Commendatore & M Currie & I Kubin, 2005. "Chaotic Footloose Capital," The School of Economics Discussion Paper Series 0502, Economics, The University of Manchester.
  6. Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215.
  7. Brulhart, Marius & Trionfetti, Federico, 2004. "Public expenditure, international specialisation and agglomeration," European Economic Review, Elsevier, vol. 48(4), pages 851-881, August.
  8. Borck, Rainald & Pflüger, Michael P., 2004. "Agglomeration and Tax Competition," IZA Discussion Papers 1033, Institute for the Study of Labor (IZA).
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Cited by:
  1. Commendatore, Pasquale & Kubin, Ingrid & Petraglia, Carmelo, 2007. "Productive Public Expenditure in a New Economic Geography Model," MPRA Paper 5824, University Library of Munich, Germany.

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