Borck, Rainald; Pflüger, Michael - 2021
competition models. The agglomeration rent which accrues to the mobile factor in the core region can be taxed. Moreover, a tax … differential between the core and the periphery can be maintained. The present paper reexamines this issue in a setting which, in … addition to core-periphery equilibria, exhibits stable equilibria with partial agglomeration. We show that a tax differential …