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Akiyoshi Furukawa
''Regional allocation of public investment with transfer policy and agglomeration''
( 2012, Vol. 32 No.3 )
This paper analyses the allocation of public investment across heterogeneous regions when the government can use a regional transfer policy and individuals can migrate across regions. The government should choose the same amount of public investment regardless of the taxation policy. The government should use taxation to concentrate individuals in the region in order to utilize scale economies. To control regional agglomeration, the government should use taxation, not the public investment.
Keywords: Agglomeration, Redistribution, Public investment
D3 - Distribution: General
Manuscript Received : Apr 09 2012 Manuscript Accepted : Jul 04 2012

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