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Is Population Dispersion Policy Necessary?

Author

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  • Pines, D.

Abstract

It is common to explain the market failure in efficiently distributing the population among urban areas by externalities associated with unpriced transportation congestion and external scale economies in the supply of private and public goods. Consequently, in prescribing the appropriate corrective policy, Pigovian taxes and subsidies are considered to be the first-best while measures to directly affect the population distribution among cities are considered to be only second-best policy. This paper shows that the above diagnosis may be misleading and, consequently, the implied prescription may be either ineffective or even harmful. In such cases a population dispersion policy is necessary for achieving efficient resource allocation.

Suggested Citation

  • Pines, D., 1999. "Is Population Dispersion Policy Necessary?," Papers 18-99, Tel Aviv.
  • Handle: RePEc:fth:teavfo:18-99
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    More about this item

    Keywords

    POPULATION ; PUBLIC GOODS ; REGIONAL DEVELOPMENT;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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