Behrens, Kristian; Hamilton, Jonathan H.; Ottaviano, … - Center for Operations Research and Econometrics … - 2007
‘production
tax’ (OP), which falls mostly on mobile firms, will have spatial effects in the long run.
Our results confirm this … bracehtipupright
negative effects
and ∂r
o
F
∂soH > 0
∂ToF
∂soH > 0bracehtipupleft bracehtipdownrightbracehtipdownleft bracehtipupright …
positive effects
so that the total effect can go either way. Stated differently, under the short-run OP the
non-cooperative tax …