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Innovation and Imitation Across Jurisdictions

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Author Info
Amihai Glazer () (Department of Economics, University of California-Irvine)
Hiroki Kondo () (Department of Economics, Shinshu University)

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Abstract

We consider cities which can increase the income of landowners or of capital owners by improving the quality of public services. The improvement can come from innovation or from imitation. We find that when cities aim to benefit landowners, too many cities innovate; but too few cities innovate when the city aims to benefit capital owners. Redistribution across cities can ameliorate these inefficiencies.

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Publisher Info
Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 070807.

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Length: 21 pages
Date of creation: Nov 2007
Date of revision:
Handle: RePEc:irv:wpaper:070807

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Postal: Irvine, CA 92697-3125
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Web page: http://www.econ.uci.edu/
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Related research
Keywords: Tax competition Innovation Interjurisdictional differences

Find related papers by JEL classification:
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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References listed on IDEAS
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    Other versions:
  2. Christos Kotsogiannis & Robert Schwager, 2005. "On the Incentives to Experiment in Federations," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  3. Lars P Feld, 2004. "On Tax Competition: The (Un-)Expected Advantages of Decentralized Fiscal Autonomy," Marburg Working Papers on Economics 200425, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung). [Downloadable!]
  4. Epple, Dennis & Nechyba, Thomas, 2004. "Fiscal decentralization," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 55, pages 2423-2480 Elsevier. [Downloadable!] (restricted)
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  6. Inman, Robert P & Rubinfeld, Daniel L, 1997. "Rethinking Federalism," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 43-64, Fall. [Downloadable!] (restricted)
  7. Scotchmer, Suzanne, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 29-41, Winter. [Downloadable!] (restricted)
  8. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September. [Downloadable!] (restricted)
  9. Strumpf, Koleman S, 2002. " Does Government Decentralization Increase Policy Innovation?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(2), pages 207-41. [Downloadable!] (restricted)
  10. Baake, Pio & Boom, Anette, 2001. "Vertical product differentiation, network externalities, and compatibility decisions," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 267-284, January. [Downloadable!] (restricted)
    Other versions:
  11. Thomas F. Cooley & Mehmet Yorukoglu, 2003. "Innovation and Imitation in an Information Age," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 406-418, 04/05. [Downloadable!] (restricted)
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