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Innovation and Imitation Across Jurisdictions

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  • Amihai Glazer

    ()
    (Department of Economics, University of California-Irvine)

  • Hiroki Kondo

    ()
    (Department of Economics, Shinshu University)

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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Bibliographic 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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Keywords: Tax competition; Innovation; Interjurisdictional differences;

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  1. Myers & G.M., 1989. "Optimality, Free Mobility And The Regional Authority In Federation," Working Papers, John Deutsch Institute for the Study of Economic Policy 10, John Deutsch Institute for the Study of Economic Policy.
  2. Suzanne Scotchmer, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 5(1), pages 29-41, Winter.
  3. Christos Kotsogiannis & Robert Schwager, 2005. "On the Incentives to Experiment in Federations," Discussion Papers, Exeter University, Department of Economics 0507, Exeter University, Department of Economics.
  4. Timothy Besley & Anne Case, 1992. "Incumbent Behavior: Vote Seeking, Tax Setting and Yardstick Competition," NBER Working Papers 4041, National Bureau of Economic Research, Inc.
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  7. Epple, Dennis & Nechyba, Thomas, 2004. "Fiscal decentralization," Handbook of Regional and Urban Economics, Elsevier, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 55, pages 2423-2480 Elsevier.
  8. Robert P. Inman & Daniel L. Rubinfeld, 1997. "Rethinking Federalism," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 11(4), pages 43-64, Fall.
  9. Strumpf, Koleman S, 2002. " Does Government Decentralization Increase Policy Innovation?," Journal of Public Economic Theory, Association for Public Economic Theory, Association for Public Economic Theory, vol. 4(2), pages 207-41.
  10. Lars P Feld, 2004. "On Tax Competition: The (Un-)Expected Advantages of Decentralized Fiscal Autonomy," Marburg Working Papers on Economics, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) 200425, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  11. Thomas F. Cooley & Mehmet Yorukoglu, 2003. "Innovation and Imitation in an Information Age," Journal of the European Economic Association, MIT Press, MIT Press, vol. 1(2-3), pages 406-418, 04/05.
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