英文摘要 |
This study explores the impact of spillovers of public goods on industrial agglomeration based on the structure of the new economic geography. The model employed in this study is built on the Forslid and Ottaviano (2003) type of core-periphery model and the structure of taxation in Andersson and Forslid (2003). The endogenous provision of local public goods is explored for the cases of symmetric and asymmetric spillovers of the public goods. It is shown that the Nash equilibrium tax rate for public goods in each region causes a free-rider effect. Differing from the pattern of firms’ distribution with Krugman (1991), symmetric distribution of firms does not emerge when the spillovers are asymmetric. Moreover, the spillover effect acts as a dispersion force for the distribution of mobile workers between two regions. |