Public goods and location choice

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Other Title
  • 公共財と立地選択
  • コウキョウザイ ト リッチ センタク

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Abstract

This paper discusses the effect of pure public goods on migration. In our model, there are two regions—the public good is produced in only one, but all inhabitants can consume it, and agglomeration economies are driven by scale economies and love-of-variety. This model shows that the public sector increases/decreases agglomeration economies according to the inhabitants' evaluation of public goods, as well as the existence of interior equilibria where neither region captures all economic activities. This paper also analyzes the comparative static properties of these stable equilibria.

Journal

  • 經濟學論叢

    經濟學論叢 64 (2), 453-466, 2012-09-20

    The Doshisha Economic Association

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