Arbeitspapier
Taxation, Infrastructure, and Endogenous Trade Costs in New Economic Geography
This paper presents a New Economic Geography model with distortionary taxation and endogenized trade costs. Tax revenues finance a public good, infrastructure. We show that the introduction of costly public investment in infrastructure increases agglomerative tendencies. With respect to the regions' sizes, in the periphery, the price-index for manufacturing goods decreases, whereas for the core, the price-index is rather high since the distortionary effect of taxes dominates. 'Free riding' ¡ or, in terms of regional policy, externally funded infrastructure investment; is beneficial for the periphery, which can devote all its tax revenue to local demand support, generating a positive home market effect and driving the catch-up process.
- Sprache
-
Englisch
- Erschienen in
-
Series: Quaderni - Working Paper DSE ; No. 668
- Klassifikation
-
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Business Taxes and Subsidies including sales and value-added (VAT)
National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock
Size and Spatial Distributions of Regional Economic Activity
- Thema
-
Neue ökonomische Geographie
Transportkosten
Steuer
Infrastrukturinvestition
Regionalpolitik
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Gruber, Stefan
Marattin, Luigi
- Ereignis
-
Veröffentlichung
- (wer)
-
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
- (wo)
-
Bologna
- (wann)
-
2009
- DOI
-
doi:10.6092/unibo/amsacta/4578
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Gruber, Stefan
- Marattin, Luigi
- Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
Entstanden
- 2009
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