Public Input Competition and Agglomeration

Beitrag in einer Fachzeitschrift

Details zur Publikation

Autor(en): Fenge R, von Ehrlich M, Wrede M
Zeitschrift: Regional Science and Urban Economics
Verlag: Elsevier
Jahr der Veröffentlichung: 2009
Band: 39
Seitenbereich: 621 – 631
ISSN: 0166-0462
Sprache: Englisch


This paper analyzes the impact of public input competition in a New Economic Geography framework. It is shown that regional competition yields an overprovision of public inputs if trade costs are sizable while it leads to underprovision if regions are highly integrated. Moreover, public input competition assures a dispersion of industry as long as trade costs are high but induces agglomeration even for ex ante identical regions if trade costs have fallen below a certain value. Finally, a trade-off between regional convergence and efficiency arises since the efficient distribution of regional infrastructure requires full agglomeration for sufficiently low trade costs. © 2009 Elsevier B.V. All rights reserved.

FAU-Autoren / FAU-Herausgeber

Wrede, Matthias Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Sozialpolitik


Fenge, R., von Ehrlich, M., & Wrede, M. (2009). Public Input Competition and Agglomeration. Regional Science and Urban Economics, 39, 621 – 631.

Fenge, Robert, Maximilian von Ehrlich, and Matthias Wrede. "Public Input Competition and Agglomeration." Regional Science and Urban Economics 39 (2009): 621 – 631.


Zuletzt aktualisiert 2018-14-07 um 14:23