North-South Imbalances: Policies in a Spatial Equilibrium
The paper introduces mobility costs and non-competitive wage setting into the spatial equilibrium model to analyse regional differences in rents, wages, unemployment and populations. It also considers the impact of policies, such as transfer payments to households and subsidies to firms, and illustrates a numerical exercise to discuss their welfare implications.
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Volume (Year): 69 (2010)
Issue (Month): 2 (July)
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