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Public Sector Size and Peripherality

  • Rhydian James
  • Peter Midmore
  • Dennis Thomas
Registered author(s):

    This paper develops a model that shows how a country can endogenously become differentiated into a private-sector dominated ‘core’ region and a public-sector dominated ‘periphery’. A large public sector is closely associated with peripheral economies, although it is unclear to what extent it is a cause of peripherality rather than a symptom. The paper takes a minimum public sector size, dependent on each region's population, to present a public sector increasing in volume relative to falling population. This modelling activity is an attempt to quantify empirical and quantitative observations on the size of regional public sectors in terms of the new economic geography, and demonstrates that under various conditions a relatively large public sector can be beneficial for a peripheral region. RÉSUMÉ La présente communication développe un modèle montrant la façon dont un pays peut devenir, de façon endogène, différencié dans une région essentielle dominée par le secteur privé, et une « périphérie » dominée par le secteur public. Il existe des rapports étroits entre un secteur public important et des économies périphériques, bien que l'on ne puisse déterminer dans quelle mesure il s'agit d'une cause de périphéricité plutôt que d'un symptôme. Cette communication utilise une taille minimale de secteur public, en fonction de la population de chaque région, pour présenter un secteur public augmentant en volume relativement à la diminution de la population. Cette activité de modélisation est une tentative de quantification d'observations empiriques et quantitatives sur la taille des secteurs publics régionaux sur le plan de la nouvelle géographie économique, et démontre que, dans certaines conditions, un secteur public d'envergure relativement importante peut être bénéfique pour une région périphérique. EXTRACTO Este estudio desarrolla un modelo que muestra cómo un país puede llegar a diferenciarse endógenamente como una región ‘central’ dominada por el sector privado y una ‘ periferia’ dominada por el sector público. Un sector público amplio se asocia estrechamente con economías periféricas, aunque no está claro hasta qué punto es una causa de la periferalidad en lugar de un síntoma. El estudio toma un tamaño mínimo de sector público, dependiente de la población de cada región, para presentar un sector público que aumenta en volumen en relación con una población decreciente. Esta actividad de modelación es un intento de cuantificar observaciones empíricas y cuantitativas sobre el tamaño de los sectores públicos regionales en términos de la nueva geografía económica, y demuestra que bajo varias condiciones, un sector público relativamente grande puede ser beneficioso para una región periférica. 公共部门规模和边缘&# x6027; 摘要 : 本文提出了一种新的&# x6A21;型 , 使一个国家内生分化&# x6210;私营部门主导的‘ 838;心’区域和公共部फ़ 8;主导的‘外围’区域 。大量公共部门都与&# x5916;围经济紧密相连 , 尽管尚不清楚它们在&# x591A;大程度上决定了是 FB9;缘化还是虚拟化。ٲ C;文参照各个地区的人 口数目相应地采用最&# x5C0F;的公共部门规模 , 证明在人口下降时公&# x5171;部门体积增加。这 E00;建模过程是为了尝ࢽ 5;使用新的经济地理学 方法对区域公共部门&# x89C4;模的经验和定量观 BDF;结果进行量化。结ٹ C;显示在多种不同情况 下,相对大的公共部&# x95E8;对外围区域有益。

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    File URL: http://hdl.handle.net/10.1080/17421772.2012.722666
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    Article provided by Taylor & Francis Journals in its journal Spatial Economic Analysis.

    Volume (Year): 7 (2012)
    Issue (Month): 4 (December)
    Pages: 447-460

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    Handle: RePEc:taf:specan:v:7:y:2012:i:4:p:447-460
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    17. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
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