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Regional allocation of public investment with transfer policy and agglomeration


  • Akiyoshi Furukawa

    () (Department of Economics, Chukyo University)


This paper analyses the allocation of public investment across heterogeneous regions when the government can use a regional transfer policy and individuals can migrate across regions. The government should choose the same amount of public investment regardless of the taxation policy. The government should use taxation to concentrate individuals in the region in order to utilize scale economies. To control regional agglomeration, the government should use taxation, not the public investment.

Suggested Citation

  • Akiyoshi Furukawa, 2012. "Regional allocation of public investment with transfer policy and agglomeration," Economics Bulletin, AccessEcon, vol. 32(3), pages 1865-1872.
  • Handle: RePEc:ebl:ecbull:eb-12-00294

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    References listed on IDEAS

    1. Caminal, Ramon, 2004. "Personal redistribution and the regional allocation of public investment," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 55-69, January.
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    More about this item


    Agglomeration; Redistribution; Public investment;

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • D3 - Microeconomics - - Distribution


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