Anti-agglomeration Subsidies with Heterogeneous Firms
This paper studies anti-agglomeration subsidies in a core-periphery setting when firms are heterogeneous in labour productivity, focusing on the effects of a relocation subsidy on firm location in various tax-financing schemes (local versus global). We discuss how a subsidy can enhance welfare and average productivity in the periphery. As a result we find that a subsidy proportional to profits can induce the relocation of high productivity firms and thus increase welfare and average productivity in the periphery. Concerning tax-financing schemes, a local tax financing scheme has an optimal level of subsidy.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://ies.keio.ac.jp/old_project/old/gcoe-econbus/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 321-359, October.
- Philippe Martin & Thierry Mayer & Florian Mayneris, 2011.
"Public support to clusters. A firm level study of french 'local productive systems',"
Sciences Po publications
info:hdl:2441/c8dmi8nm4pd, Sciences Po.
- Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Public support to clusters: A firm level study of French "Local Productive Systems"," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 108-123, March.
- MARTIN, Philippe & MAYER, Thierry & MAYNERIS, Florian, . "Public support to clusters. A firm level study of French "Local Productive Systems"," CORE Discussion Papers RP -2287, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2008. "Public Support to Clusters: A Firm Level Study of French “Local Productive Systems”," CEPR Discussion Papers 7102, C.E.P.R. Discussion Papers.
- Philippe Martin & Thierry Mayer & Florian Mayneris, 2008. "Public support to clusters : a firm level study of French 'local productive systems'," Sciences Po publications 7102, Sciences Po.
- Richard E. Baldwin & Toshihiro Okubo, 2006.
"Heterogeneous firms, agglomeration and economic geography: spatial selection and sorting,"
Journal of Economic Geography,
Oxford University Press, vol. 6(3), pages 323-346, June.
- Richard Baldwin & Toshihiro Okubo, 2005. "Heterogeneous Firms, Agglomeration and Economic Geography: Spatial Selection and Sorting," NBER Working Papers 11650, National Bureau of Economic Research, Inc.
- Dupont, Vincent & Martin, Philippe, 2003.
"Subsidies to Poor Regions and Inequalities: Some Unpleasant Arithmetic,"
CEPR Discussion Papers
4107, C.E.P.R. Discussion Papers.
- Vincent Dupont & Philippe Martin, 2006. "Subsidies to poor regions and inequalities: some unpleasant arithmetic," Journal of Economic Geography, Oxford University Press, vol. 6(2), pages 223-240, April.
- Richard Baldwin & Toshihiro Okubo, 2009.
"Tax reform, delocation and heterogeneous firms,"
NBER Working Papers
15109, National Bureau of Economic Research, Inc.
- Mohl, P. & Hagen, T., 2010. "Do EU structural funds promote regional growth? New evidence from various panel data approaches," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 353-365, September.
- Toshihiro Okubo & Eiichi Tomiura, 2010.
"Industrial relocation policy and heterogeneous plants sorted by productivity: Evidence from Japan,"
Discussion Paper Series
DP2010-35, Research Institute for Economics & Business Administration, Kobe University.
- OKUBO Toshihiro & TOMIURA Eiichi, 2010. "Industrial Relocation Policy and Heterogeneous Plants Sorted by Productivity: Evidence from Japan," Discussion papers 10016, Research Institute of Economy, Trade and Industry (RIETI).
- K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 142, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- Martin, Philippe & Rogers, Carol Ann, 1994.
"Industrial Location and Public Infrastructure,"
CEPR Discussion Papers
909, C.E.P.R. Discussion Papers.
- Okubo, Toshihiro, 2009. "Trade liberalisation and agglomeration with firm heterogeneity: Forward and backward linkages," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 530-541, September.
When requesting a correction, please mention this item's handle: RePEc:kei:dpaper:2011-012. 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: (Global COE Program Office)The email address of this maintainer does not seem to be valid anymore. Please ask Global COE Program Office to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.