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Deutsches Institut für Wirtschaftsforschung (DIW), Berlin >
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http://hdl.handle.net/10419/18104
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| Title: | | Agglomeration and tax competition  |
| Authors: | | Pflüger, Michael Borck, Rainald |
| Issue Date: | | 2004 |
| Series/Report no.: | | DIW-Diskussionspapiere 408 |
| Abstract: | | Tax competition for a mobile factor is different in `new economic geography set- tings' compared to standard tax competition models. The agglomeration rent which accrues to the mobile factor in the core region can be taxed. Moreover, a tax differential between the core and the periphery can be maintained. The present paper reexamines this issue in a setting which, in addition to the core-periphery equilibria, exhibits stable equilibria with partial agglomeration. We show that a tax differential may arise as an equilibrium of the tax game even when there is only partial agglomeration and the mobile factor does not derive an agglomeration rent. |
| Subjects: | | Economic Geography Agglomeration Tax Competition |
| JEL: | | H73 F22 F15 R12 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW DIW-Diskussionspapiere
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| dp408.pdf | | 372.16 kB | Adobe PDF |
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