Governmental activity, integration, and agglomeration
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Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg, 2007. (Working paper series in economics; No. 57).
Research output: Working paper › Working papers
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TY - UNPB
T1 - Governmental activity, integration, and agglomeration
AU - Ott, Ingrid
AU - Soretz, Susanne
N1 - Literaturverz. S. 29 - 30
PY - 2007
Y1 - 2007
N2 - This paper analyzes, within a regional growth model, the impact of productive governmental policy and integration on the spatial distribution of economic activity. Integration is understood as enhancing territorial cooperation between the regions, and it describes the extent to which one region may benefit from the other region's public input, e.g. the extent to which regional road networks are connected. Both integration and the characteristics of the public input crucially affect whether agglomeration arises and if so to which extent economic activity is concentrated: As a consequence of enhanced integration, agglomeration is less likely to arise and concentration will be lower. Relative congestion reinforces agglomeration, thereby increasing equilibrium concentration. Due to the congestion externalities, the market outcome ends up in suboptimally high concentration.
AB - This paper analyzes, within a regional growth model, the impact of productive governmental policy and integration on the spatial distribution of economic activity. Integration is understood as enhancing territorial cooperation between the regions, and it describes the extent to which one region may benefit from the other region's public input, e.g. the extent to which regional road networks are connected. Both integration and the characteristics of the public input crucially affect whether agglomeration arises and if so to which extent economic activity is concentrated: As a consequence of enhanced integration, agglomeration is less likely to arise and concentration will be lower. Relative congestion reinforces agglomeration, thereby increasing equilibrium concentration. Due to the congestion externalities, the market outcome ends up in suboptimally high concentration.
KW - Economics
M3 - Working papers
T3 - Working paper series in economics
BT - Governmental activity, integration, and agglomeration
PB - Institut für Volkswirtschaftslehre der Universität Lüneburg
CY - Lüneburg
ER -