英文摘要 |
Under the new economic geography framework, this study analyzes the effect of provision of public goods on industrial distribution between two regions. The major properties for provision of local public goods are the endogenous land rent for land costs and the scarcity of land resources. This study explores two patterns of public goods, a uniformly spreading pattern and a concentrated pattern in the city center. Comparing with Tabuchi (1998), our model can increase the centripetal force for agglomeration due to the increase in utility level. When transportation costs are small and tax rates for provision of local public goods are equal, industrial distribution has two types, full agglomeration at one region or symmetric dispersion. However, compared with Andersson and Forslid (2003), our model shows the centrifugal force for dispersion increases with a higher tax rate because the provision of public goods needs land and thus reduces the land available for housing. |