Public Debt and Economic Geography
Bibliographic Data
| ID | 19066291 |
|---|---|
| Authors | Federico Trionfetti (0009-0006-7711-5019, Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS, France, corresponding author) |
| Year | 2012 |
| Volume | 38 |
| Issue | 1 |
| Pages | 92-113 |
| Publication date | 2012-11-09 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Regional Science Review (JOURNAL) |
| Journal identifiers | ISSN: 0160-0176 • E-ISSN: 1552-6925 |
| Publisher | SAGE Publishing (PUBLISHER • US) |
| DOI | 10.1177/0160017612462873 |
| OpenAlex | W2119871026 |
| Language | EN |
| References cited | 17 |
This article studies the consequences of debt policies on the spatial distribution of output in a two-country model. It departs from the usual setup of local public finance by relaxing the assumption of balanced budget. Further, to single out the pure effect of debt, the article eliminates effects coming from tax and expenditure policies by assuming them exogenous and identical between countries except for the timing of taxation. Expected taxation rather than current tax levels motivates migration. Starting from an initial spatial configuration, be it Core–Periphery or symmetric equilibrium, the analysis identifies the critical thresholds of divergence or convergence of debt ratios which break the initial configuration. The article also shows that a high-debt country or a fast debt reducing country is a weaker player in the tax competition game. Finally, tax harmonization does not necessarily reduce migration flows
Debt · Economics · External debt · Harmonization · Indirect tax · Internal debt · International economics · Macroeconomics · Monetary economics · Public economics · Tax competition · Tax harmonization · Tax reform · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Regional Economics and Spatial Analysis
History Versus Expectations
Agglomeration, integration and tax harmonisation
The structure of simple 'New Economic Geography' models (or, On identical twins)
An analytically solvable core-periphery model
Increasing Returns and Economic Geography
Do Agglomeration Economies Reduce the Sensitivity of Firm Location to Tax Differentials
| Highly cited | No |
|---|