search query: @indexterm Regional policy / total: 271
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| Author: | Robert-Nicoud, F. Sbergami, F. |
| Title: | Home-market vs. vote-market effect: Location equilibrium in a probabilistic voting model |
| Journal: | European Economic Review
2004 : FEB, VOL. 48:1, p. 155-179 |
| Index terms: | Political economy Regional policy Location of industry Models |
| Language: | eng |
| Abstract: | This paper considers the location of manufacturing activities when regional policies are endogenous. It is found that once the political economy of regional policy is explicitly taken into account, regional population size has an ambiguous effect on the level of regional subsidy, even though it plays a key role in determining the equilibrium spatial allocation of industry. In particular, the final allocation of firms depends both on the relative economic strengths of the two regions, as well as by their relative political strengths. |
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