|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/26129
|
| | |
| Title: | | Fiscal competition, convergence and agglomeration  |
| Authors: | | Fenge, Robert von Ehrlich, Maximilian Wrede, Matthias |
| Issue Date: | | 2007 |
| Series/Report no.: | | CESifo working paper 2084 |
| Abstract: | | This paper analyzes the impact of fiscal competition through infrastructure in a New Economic Geography framework. It is shown that regional competition leads to convergence if the trade costs are high but induces divergence if trade cost have fallen below a certain value. Moreover, fiscal competition yields an overprovision if the trade costs are sizable while it leads to underprovision if the regions are highly integrated. Finally, a trade-off between regional convergence and efficiency arises since the efficient distribution of regional infrastructure requires full agglomeration for sufficiently low trade costs. |
| JEL: | | F12 F15 H87 R12 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/26129
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|