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http://hdl.handle.net/10419/20268
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| Title: | | Agglomeration and Tax Competition  |
| Authors: | | Borck, Rainald Pflüger, Michael |
| Issue Date: | | 2004 |
| Series/Report no.: | | IZA Discussion paper series 1033 |
| Abstract: | | Tax competition for a mobile factor is different in 'new economic geography settings' 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 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 IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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