1,720,981 research outputs found
Taxation, public expenditure and agglomeration
No full textRecently, issues of international taxation have also been analysed from a New Economic Geography perspective. These discussions show that adding agglomerative forces can change the results considerably. In our paper, we introduce a public sector into a Footloose Capital model: Capital income is taxed according to the residence principle and any tax revenue is spent for providing a public commodity. Thus, public policy changes the sectoral split of total expenditures, which is central for determining international factor rewards and thus for factor mobility. We modeled this factor mobility process - along the lines of a replicator dynamics - in discrete time and studied its local and global properties. We showed that multiple equilibria are possible, involving cyclical and chaotic attractors; and that the basins of attraction may exhibit a highly complex structure. In that environment, the long run outcome of the dynamics process may depended highly sensitive to initial conditions and/or parameters. Public policy trying to attract industrial capital to one country may trigger a dynamic process actually leading to agglomeration in the other country
Chaotic footloose capital
No full textThis paper examines the long-term behavior of a discrete-time Footloose Capital model, where capitalists, who are themselves immobile between regions, move their physical capital between regions in response to economic incentives. The spatial location of industry can exhibit cycles of any periodicity or behave chaotically. Long-term behavior is highly sensitive to transport costs and to the responsiveness of capitalists to profit differentials. The concentration of industry in one region can result from high transport costs or from rapid responses by capitalists. In terms of possible dynamical behaviors, the discrete-time model is much richer than the standard continuous-time Footloose Capital model
Typical bifurcation scenario in a three-region identical new economic geography model
No full textWe study global dynamics of the New Economic Geography model which de-
scribes spatial distribution of industrial activity in the long run across three
identical regions depending on the balancing of agglomeration and dispersion
forces. It is dened by a two-dimensional piecewise smooth map depending on
four parameters. Based on the numerical evidence we discuss typical bifurca-
tion scenarios observed in the model: starting from the symmetric xed point
(related to equal distribution of the industrial activity in all the three regions)
two dierent scenario are realized depending on whether the transportation cost
parameter is increased or decreased. Emergence of the Wada basins of coexist-
ing attractors leading to the so-called nal state sensitivity is discussed, as well
as nal bifurcation of the chaotic attractor
Source versus Residence. A comparison from a New Economic Geography perspective
No full textRecently, issues of international taxation have also been analysed from a New Economic Geography perspective. These discussions show that agglomerative forces play a non negligible role. In the paper, we introduce explicitly taxation into a Footloose Capital Model and compare implications of taxation according to the residence principle and the source principle from a New Economic Geography perspective. We confirm that agglomerative effects change the results substantially compared to the standard analysis and that the two taxation principles have different implications for industry agglomeration. (author's abstract)Series: Discussion Papers SFB International Tax Coordinatio
Expectations and Industry Location: a Discrete Time Dynamical Analysis
No full textThe new economic geography (NEG) aims to explain long-term patterns in the spatial allocation of industrial activities. It stresses that endogenous economic processes may enlarge small historic differences leading to quite different regional patterns—history matters for the long-term geographical distribution of economic activities. A pivotal element is that productive factors move to another region whenever
the anticipated remuneration is higher in that region. Given the long-term nature of NEG analyses and the crucial role of expectations, it is astonishing that most of the existing models assume only naïve or myopic expectations. However, a recent stream of the literature in behavioral and experimental economics shows that agents often use expectational heuristics, such as trend extrapolating and trend reverting rules.We introduce such expectations formation hypotheses into a NEG model formulated in discrete time. This modification leads to a system of two nonlinear difference equations
(corresponding, in the language of dynamical systems theory, to a 2-dimensional piecewise smooth map) and thus enriches the possible dynamic patterns: with trend extrapolating (reverting) the symmetric equilibrium is less (more) stable; and it may lose stability only via a flip bifurcation (or also via a Neimark–Sacker bifurcation)giving rise to a period-doubling cascade (or also to quasi-periodic orbits). In both cases, complex behavior is possible; multistability, that is, the coexistence of locally stable equilibria, is pervasive; and border-collision bifurcations are also allowed. In this sense, our analysis corroborates some of the basic insights of the NEG
Footloose capital and productive public services
No full textWe analyse in a Footloose Capital productive public services provided by a central government aiming at reducing regional disparities. Two countervailing effects occur - one upon productivity and another upon local demand - the relative strength of which depends upon the financing scheme. Only if the "rich" region contributes sufficiently to the financing of the public services in the "poor" region, the poor region will actually gain. In studying these questions we pay particular attention to the dynamic adjustment processes and to the role of trade freeness.Series: Department of Economics Working Paper Serie
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
- …
