Antiagglomeration Subsidies With Heterogeneous Firms
This paper studies anti-agglomeration subsidies in a core-periphery setting when firms are heterogeneous in labour productivity, focusing on the effects of a relocation subsidy on firm location in various tax-financing schemes (local versus global). We discuss how a subsidy can enhance welfare and average productivity in the periphery. As a result we find that a subsidy proportional to profits can induce the relocation of high productivity firms and thus increase welfare and average productivity in the periphery. Concerning tax-financing schemes, a local tax financing scheme has an optimal level of subsidy.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 52 (2012)
Issue (Month): 2 (05)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146 |
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0022-4146|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Vincent Dupont & Philippe Martin, 2006.
"Subsidies to poor regions and inequalities: some unpleasant arithmetic,"
Journal of Economic Geography,
Oxford University Press, vol. 6(2), pages 223-240, April.
- Dupont, Vincent & Martin, Philippe, 2003. "Subsidies to Poor Regions and Inequalities: Some Unpleasant Arithmetic," CEPR Discussion Papers 4107, C.E.P.R. Discussion Papers.
- MARTIN, Philippe & MAYER, Thierry & MAYNERIS, Florian, .
"Public support to clusters. A firm level study of French "Local Productive Systems","
CORE Discussion Papers RP
-2287, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Public support to clusters: A firm level study of French "Local Productive Systems"," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 108-123, March.
- Philippe Martin & Thierry Mayer & Florian Mayneris, 2011. "Public support to clusters. A firm level study of french 'local productive systems'," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
- Philippe Martin & Thierry Mayer & Florian Mayneris, 2008. "Public support to clusters : a firm level study of French 'local productive systems'," Sciences Po publications 7102, Sciences Po.
- Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2008. "Public Support to Clusters: A Firm Level Study of French “Local Productive Systems”," CEPR Discussion Papers 7102, C.E.P.R. Discussion Papers.
- OKUBO Toshihiro & TOMIURA Eiichi, 2010.
"Industrial Relocation Policy and Heterogeneous Plants Sorted by Productivity: Evidence from Japan,"
10016, Research Institute of Economy, Trade and Industry (RIETI).
- Toshihiro Okubo & Eiichi Tomiura, 2010. "Industrial relocation policy and heterogeneous plants sorted by productivity: Evidence from Japan," Discussion Paper Series DP2010-35, Research Institute for Economics & Business Administration, Kobe University.
- Richard Baldwin & Toshihiro Okubo, 2009.
"Tax Reform, Delocation, and Heterogeneous Firms,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 111(4), pages 741-764, December.
- Baldwin, Richard & Okubo, Toshihiro, 2009. "Tax reform, delocation and heterogeneous firms," CEPR Discussion Papers 7340, C.E.P.R. Discussion Papers.
- Richard Baldwin & Toshihiro Okubo, 2009. "Tax reform, delocation and heterogeneous firms," NBER Working Papers 15109, National Bureau of Economic Research, Inc.
- Okubo, Toshihiro, 2009. "Trade liberalisation and agglomeration with firm heterogeneity: Forward and backward linkages," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 530-541, September.
- Mohl, P. & Hagen, T., 2010. "Do EU structural funds promote regional growth? New evidence from various panel data approaches," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 353-365, September.
- Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 321-359, October.
- Martin, Philippe & Rogers, Carol Ann, 1994.
"Industrial Location and Public Infrastructure,"
CEPR Discussion Papers
909, C.E.P.R. Discussion Papers.
- Richard Baldwin & Toshihiro Okubo, 2005.
"Heterogeneous Firms, Agglomeration and Economic Geography: Spatial Selection and Sorting,"
NBER Working Papers
11650, National Bureau of Economic Research, Inc.
- Richard E. Baldwin & Toshihiro Okubo, 2006. "Heterogeneous firms, agglomeration and economic geography: spatial selection and sorting," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 323-346, June.
- K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 142, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
When requesting a correction, please mention this item's handle: RePEc:bla:jregsc:v:52:y:2012:i:2:p:285-299. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.