Agglomeration economies, taxable rents and government capture: evidence from a place-based policy

Détails

ID Serval
serval:BIB_3AEF410C81B0
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
Agglomeration economies, taxable rents and government capture: evidence from a place-based policy
Périodique
Journal of Economic Geography
Auteur⸱e⸱s
Brülhart M., Simpson H.
ISSN
1468-2702
1468-2710
Statut éditorial
Publié
Date de publication
09/06/2017
Peer-reviewed
Oui
Volume
18
Numéro
8
Pages
319-353
Langue
anglais
Résumé
We study how industry-level agglomeration economies affect government policy. Using administrative data on firm subsidies in economically lagging regions of Great Britain, we test two alternative hypotheses. Economic geography models imply that firms at an industry’s core can sustain higher tax burdens or require lower subsidies than firms in more remote locations. Conversely, political economy models predict firms at the industry’s core to be more successful at lobbying government, particularly at the sub-national level, thus obtaining more favourable fiscal treatment. We find that local government agencies structure subsidy offers to favour pre-existing employment in locally agglomerated industries, behaviour more in line with theories of policy capture than with economic geography models.
Mots-clé
agglomeration, taxation, policy capture, regional grants, Geography, Planning and Development, Economics and Econometrics
Création de la notice
24/04/2017 10:23
Dernière modification de la notice
20/08/2019 13:30
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