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Footloose capital and productive public services

Commendatore, Pasquale and Kubin, Ingrid and Petraglia, Carmelo (2007) Footloose capital and productive public services. Department of Economics Working Paper Series, 111. Inst. für Volkswirtschaftstheorie und -politik, WU Vienna University of Economics and Business, Vienna.

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Abstract

We analyse in a Footloose Capital productive public services provided by a central government aiming at reducing regional disparities. Two countervailing effects occur - one upon productivity and another upon local demand - the relative strength of which depends upon the financing scheme. Only if the "rich" region contributes sufficiently to the financing of the public services in the "poor" region, the poor region will actually gain. In studying these questions we pay particular attention to the dynamic adjustment processes and to the role of trade freeness. (authors' abstract)

Item Type: Paper
Keywords: new economic geography / public services / regional policy
Classification Codes: RVK QY 000 ; JEL H4, R1, R12, F12
Divisions: Departments > Volkswirtschaft
Depositing User: Repository Administrator
Date Deposited: 18 Oct 2007 17:20
Last Modified: 08 Dec 2016 07:06
URI: http://epub.wu.ac.at/id/eprint/1668

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