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A normative analysis of transport policies in a footloose capital model with interregional and intraregional transportation costs

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  • Paul Chiambaretto

    ()

  • André De Palma

    ()

  • Stef Proost

    ()

Abstract

We introduce a distinction between interregional and intraregional transportation costs in a footloose capital model. This allows assessing more precisely the effects of different types of transport policies on the spatial distribution of activities. From a normative point of view, we find that, in the absence of regulation, the concentration of industrial activity is too high in the center. We show what set of interregional and intraregional transport policies improves the equilibrium. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Paul Chiambaretto & André De Palma & Stef Proost, 2013. "A normative analysis of transport policies in a footloose capital model with interregional and intraregional transportation costs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(3), pages 811-831, December.
  • Handle: RePEc:spr:anresc:v:51:y:2013:i:3:p:811-831
    DOI: 10.1007/s00168-013-0563-3
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    References listed on IDEAS

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    1. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Firms in the European Union," Sciences Po publications info:hdl:2441/10192, Sciences Po.
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    1. repec:spr:chfecr:v:5:y:2017:i:1:d:10.1186_s40589-017-0047-1 is not listed on IDEAS

    More about this item

    Keywords

    R11; R12; R13; R42; R48; R58;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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