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Public Expenditure and Economic Geography

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  • Federico Trionfetti

Abstract

Adding public expenditure to the core-periphery model creates a linkage that can override the agglomeration forces. Consequently, the equilibrium distribution of economic activity depends upon the nature and allocation of public expenditure. Appropriate public expenditure eliminates the possibility that economic integration results in total agglomeration of manufacturing. A corollary is that (contrary to the core-periphery model) location matters even in the absence of transport costs. Tied aid, and international transfers are also considered.

Suggested Citation

  • Federico Trionfetti, 1997. "Public Expenditure and Economic Geography," Annals of Economics and Statistics, GENES, issue 47, pages 101-120.
  • Handle: RePEc:adr:anecst:y:1997:i:47:p:101-120
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    File URL: http://www.jstor.org/stable/20076084
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    Cited by:

    1. Pasquale Commendatore & Ingrid Kubin & Carmelo Petraglia, 2009. "Footloose Capital and Productive Public Services," Chapters,in: Geography, Structural Change and Economic Development, chapter 1 Edward Elgar Publishing.
    2. Pasquale Commendatore & Ingrid Kubin, 2016. "Source versus residence: A comparison from a new economic geography perspective," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 201-222, June.
    3. Luca Ricci, 2006. "Uncertainty, Flexible Exchange Rates, and Agglomeration," Open Economies Review, Springer, vol. 17(2), pages 197-219, April.
    4. G Ottaviano & Diego Puga, 1997. "Agglomeration in a global Economy: A Survey," CEP Discussion Papers dp0356, Centre for Economic Performance, LSE.
    5. repec:spr:epolin:v:45:y:2018:i:1:d:10.1007_s40812-017-0089-2 is not listed on IDEAS

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