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Agglomeration Effects and the Competition for...
Journal article

Agglomeration Effects and the Competition for Firms

Abstract

A two-region economy consists of a given but different number of immobile workers in each region, and a given number of mobile firms. Firms create jobs where they locate, but there is frictional unemployment. Two sorts of agglomeration effects arise: those from economies of scale in matching, and those from production economies external to the firm. Regions may either be part of a unitary state in which case all regional policies are decided by …

Authors

Boadway R; Cuff K; Marceau N

Journal

International Tax and Public Finance, Vol. 11, No. 5, pp. 623–645

Publisher

Springer Nature

Publication Date

September 2004

DOI

10.1023/b:itax.0000036694.48277.c1

ISSN

0927-5940