Taxation on Agglomeration
Recently, issues of international taxation have also been analysed from a New Economic Geography perspective. These discussions show that adding agglomerative forces can change the results considerably. In the paper, we introduce explicitly taxation and public expenditures into a Footloose Capital Model and investigate the local and global dynamic implications of such a public policy for industry agglomeration. It turns out that agglomeration can be highly sensitive wrt initial conditions and/or parameters and that these dynamic patterns are surprisingly robust wrt to the taxation principle.
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- Brulhart, Marius & Trionfetti, Federico, 2004. "Public expenditure, international specialisation and agglomeration," European Economic Review, Elsevier, vol. 48(4), pages 851-881, August.
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408, DIW Berlin, German Institute for Economic Research.
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University of Chicago Press, vol. 99(3), pages 483-99, June.
- Currie, Martin & Kubin, Ingrid, 2006.
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Elsevier, vol. 60(2), pages 252-275, June.
- Martin, Philippe & Rogers, Carol Ann, 1994.
"Industrial Location and Public Infrastructure,"
CEPR Discussion Papers
909, C.E.P.R. Discussion Papers.
- Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, June.
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