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Innovation and Imitation Across Jurisdictions

  • Amihai Glazer

    ()

    (Department of Economics, University of California-Irvine)

  • Hiroki Kondo

    ()

    (Department of Economics, Shinshu University)

We consider cities which can increase the income of landowners or of capital owners by improving the quality of public services. The improvement can come from innovation or from imitation. We find that when cities aim to benefit landowners, too many cities innovate; but too few cities innovate when the city aims to benefit capital owners. Redistribution across cities can ameliorate these inefficiencies.

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File URL: http://www.economics.uci.edu/files/docs/workingpapers/2007-08/glazer-07.pdf
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Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 070807.

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Length: 21 pages
Date of creation: Nov 2007
Date of revision:
Handle: RePEc:irv:wpaper:070807
Contact details of provider: Postal: Irvine, CA 92697-3125
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Web page: http://www.economics.uci.edu/

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  1. Timothy Besley & Anne Case, 1992. "Incumbent Behavior: Vote Seeking, Tax Setting and Yardstick Competition," NBER Working Papers 4041, National Bureau of Economic Research, Inc.
  2. Christos Kotsogiannis & Robert Schwager, 2005. "On the Incentives to Experiment in Federations," Discussion Papers 0507, Exeter University, Department of Economics.
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  6. Thomas F. Cooley & Mehmet Yorukoglu, 2003. "Innovation and Imitation in an Information Age," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 406-418, 04/05.
  7. Epple, Dennis & Nechyba, Thomas, 2004. "Fiscal decentralization," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 55, pages 2423-2480 Elsevier.
  8. Baake, Pio & Boom, Anette, 2001. "Vertical product differentiation, network externalities, and compatibility decisions," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 267-284, January.
  9. Lars P Feld, 2004. "On Tax Competition: The (Un-)Expected Advantages of Decentralized Fiscal Autonomy," Marburg Working Papers on Economics 200425, Philipps-Universit├Ąt Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  10. Myers & G.M., 1989. "Optimality, Free Mobility And The Regional Authority In Federation," Working Papers 10, John Deutsch Institute for the Study of Economic Policy.
  11. Strumpf, Koleman S, 2002. " Does Government Decentralization Increase Policy Innovation?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(2), pages 207-41.
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