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SPATIAL INTERDEPENDENCE AND EXTERNALITIES
Author(s) -
Sakashita Noboru
Publication year - 1989
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1989.tb01178.x
Subject(s) - inefficiency , externality , autarky , economics , public good , wage , microeconomics , private good , labour economics , market economy , welfare
Pecuniary externalities in a two‐region economy are examined from several aspects. The analysis includes fiscal externality, inefficiency of free migration, and inefficiency of autarky non‐wage income sharing. Measures to restore the productive efficiency that is lacking in the multiregion economy with local public goods are discussed. Finally, a new aspect of the interregional allocation of residential activities is analyzed as the economics of multi‐habitation.