spillover benefit to the other municipality, while the latter a spillover cost. If the net spillovers are positive (negative … context of differences in efficiency of enforcement. The low cost municipality has the lower crime damage (inclusive of the … tax burden) and attracts labor. Mobility is necessarily welfare reducing for the high cost municipality and for the MSA …

. Greater domestic cost heterogeneity leads to a higher subsidy level and a larger domestic market share. However, the … relationship between cost heterogeneity and welfare is ambiguous. Starting from a near-symmetric situation, an increase in …

the other municipality, while the latter a spillover cost. If the net spillovers are positive (negative), then the … context of differences in efficiency of enforcement. The low cost municipality has the lower crime damage (inclusive of the … tax burden) and attracts labor. Mobility is necessarily welfare reducing for the high cost municipality and for the MSA …