Jofre-Monseny, Jordi; Solé-Ollé, Albert - In: Regional Science and Urban Economics 42 (2012) 1-2, pp. 257-268
This paper examines the effect of agglomeration economies on the sensitivity of employment location to tax differentials. In the presence of agglomeration economies, when a firm moves into a community attracted by a tax reduction, other firms may decide to follow, implying that agglomeration...