IDEAS home Printed from https://ideas.repec.org/a/taf/intecj/v23y2009i1p81-109.html
   My bibliography  Save this article

Agglomeration and Returns to Scale with Capital and Public Goods in a Multi-Regional Economy

Author

Listed:
  • Wei-Bin Zhang

Abstract

This paper develops a multi-regional growth model with amenity, capital accumulation and regional public goods. The economy consists of any number of regions and each region consists of the industrial sector and public sector. The industrial sector provides goods in perfectly competitive markets. The public sector, which is financed by the regional government's tax incomes, supplies regional public goods. The public goods affect both firms and households. We show the existence of a unique equilibrium in the dynamic system. The comparative statics analysis also provides some important insights. For instance, if environmental improvement occurs in the advanced (less advanced) region, the national output rises (falls). If a region has a high rate of technological change and the other region remains technologically stationary, economic activities and labor force tend to be located in the technologically advancing region. If the propensity to save is increased, national output is increased and more people will be located in the technologically advanced region.

Suggested Citation

  • Wei-Bin Zhang, 2009. "Agglomeration and Returns to Scale with Capital and Public Goods in a Multi-Regional Economy," International Economic Journal, Taylor & Francis Journals, vol. 23(1), pages 81-109.
  • Handle: RePEc:taf:intecj:v:23:y:2009:i:1:p:81-109
    DOI: 10.1080/10168730802696673
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/10168730802696673
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. McDougall, Robert, 2000. "A New Regional Household Demand System for GTAP," GTAP Working Papers 404, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    2. J. V. Henderson & J. F. Thisse (ed.), 2004. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 4, number 4.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wei-Bin Zhang, 2014. "Multi-regional economic growth with public good and regional fiscal policies in a small-open economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 409-429, March.
    2. wei-bin zhang, 2016. "Public Debt and Economic Growth in Uzawa?s Two-Sector Model with Public Goods," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 5(4), pages 51-72, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:intecj:v:23:y:2009:i:1:p:81-109. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RIEJ20 .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.