Taking the bite out of fiscal competition

Moshe Justman, Jacques François Thisse, Tanguy Van Ypersele

Research output: Contribution to journalArticlepeer-review

28 Scopus citations

Abstract

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.

Original languageEnglish
Pages (from-to)294-315
Number of pages22
JournalJournal of Urban Economics
Volume52
Issue number2
DOIs
StatePublished - 1 Sep 2002

Keywords

  • Fiscal competition
  • Regional development
  • Technological infrastracture
  • Vertical differentiation

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies

Fingerprint

Dive into the research topics of 'Taking the bite out of fiscal competition'. Together they form a unique fingerprint.

Cite this