Vertical fiscal transfers and the location of footloose activity across a country regions

Extending Martin and Rogers’ FCM including non-tradable goods and public employment we analyse the effect on economic activity location that follows to changes on the regional distribution of transfers. An increase in the share of transfers a region receives positively affects the production of manu...

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Autores principales: Moncarz, Pedro E., Freille, S., Figueras, Alberto J., Capello, M.
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2013
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/34083
http://www.depeco.econo.unlp.edu.ar/siff/2013/Moncarz-Freille-Figueras-Capello.pdf
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Sumario:Extending Martin and Rogers’ FCM including non-tradable goods and public employment we analyse the effect on economic activity location that follows to changes on the regional distribution of transfers. An increase in the share of transfers a region receives positively affects the production of manufactures the higher are: transaction costs of goods produced under increasing returns to scale; the share of transfers that goes directly to consumers instead of local governments; the elasticity of substitution between differentiated goods; the share of consumers’ expenditure on manufactures via-as-vis on non-traded goods.