TY - JOUR
T1 - Taking the bite out of fiscal competition
AU - Justman, Moshe
AU - Thisse, Jacques François
AU - Van Ypersele, Tanguy
N1 - Funding Information:
Keywords: Fiscal competition; Regional development; Technological infrastructure; Vertical differentiation * Corresponding author. E-mail address: [email protected] (T. van Ypersele). 1 The author acknowledges the financial support of the Ministère de l’éducation, de la recherche et de la formation (Communauté française de Belgique), Convention 00/05-262.
PY - 2002/9/1
Y1 - 2002/9/1
N2 - Regions can benefit by offering infrastructure services that are differentiated by quality, thus segmenting the market for industrial location. Regions that compete on infrastructure quality have an incentive to increase the degree of differentiation between them. This places an upper bound on the number of regions successfully able to participate in the location market, and limits the dissipation of regional surplus through Tiebout competition. It indicates a process of fiscal agglomeration, through which regional concentrations arise, which does not depend on the circular causation underlying much of the recent literature on economic geography.
AB - Regions can benefit by offering infrastructure services that are differentiated by quality, thus segmenting the market for industrial location. Regions that compete on infrastructure quality have an incentive to increase the degree of differentiation between them. This places an upper bound on the number of regions successfully able to participate in the location market, and limits the dissipation of regional surplus through Tiebout competition. It indicates a process of fiscal agglomeration, through which regional concentrations arise, which does not depend on the circular causation underlying much of the recent literature on economic geography.
KW - Fiscal competition
KW - Regional development
KW - Technological infrastracture
KW - Vertical differentiation
UR - http://www.scopus.com/inward/record.url?scp=0036710113&partnerID=8YFLogxK
U2 - 10.1016/S0094-1190(02)00012-8
DO - 10.1016/S0094-1190(02)00012-8
M3 - Article
AN - SCOPUS:0036710113
SN - 0094-1190
VL - 52
SP - 294
EP - 315
JO - Journal of Urban Economics
JF - Journal of Urban Economics
IS - 2
ER -