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INFRASTRUCTURE PROVISION AND LOCATIONAL EFFICIENCY IN A FEDERATION: A NUMERICAL APPROACH
Author(s) -
Dohse Dirk
Publication year - 1998
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.1435-5597.1998.tb00716.x
Subject(s) - revenue , distribution (mathematics) , government (linguistics) , business , russian federation , tax revenue , county government , public economics , economics , economic policy , public administration , finance , political science , mathematical analysis , linguistics , philosophy , mathematics
How do different strategies of infrastructure provision affect the spatial distribution of firms and households in a federation? The current article analyzes three polar cases: in the first case there is no publicly provided infrastructure at all. The second case is the case of uniform provision, i.e., a federal government provides the same amount of infrastructure to each region, regardless of the initial spatial distribution of firms, households, and tax revenues. The third strategy is decentralized provision, i.e., infrastructure is provided according to regional tax revenues. It is shown that the superior strategy depends on the initial distribution of firms among regions which may reflect historical accidence.