Home-market vs. vote-market effect: Location equilibrium in a probabilistic voting model

Details

Serval ID
serval:BIB_BCF1C10E8AAA
Type
Article: article from journal or magazin.
Collection
Publications
Title
Home-market vs. vote-market effect: Location equilibrium in a probabilistic voting model
Journal
European Economic Review
Author(s)
Robert-Nicoud F., Sbergami F.
ISSN
0014-2921
Publication state
Published
Issued date
02/2004
Peer-reviewed
Oui
Volume
48
Number
1
Pages
155-179
Language
english
Abstract
This paper considers the location of manufacturing activities when regional policies are endogenous. We find that once the political economy of regional policy is explicitly taken into account, regional population size has an ambiguous effect on the level of regional subsidy, even though it plays a key role in determining the equilibrium spatial allocation of industry. In particular, the final allocation of firms depends both on the relative economic strengths of the two regions, as predicted by more orthodox economic geography models, as well as by their relative political strengths.
Keywords
Agglomeration, Home-market effect, Regional aids, Political economy, Swing voter
Web of science
Create date
27/10/2016 10:49
Last modification date
20/08/2019 15:31
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