In this paper, we combine the Harris-Todaro wage differential and unemployment with product variety. We analyse how city size is determined and how it relates to unemployment. Our main conclusion is as follows. If the government or the city authority executes the policy leading to growth in the...

This paper analyzes how a fiscal transfer scheme affects tax cooperation in a repeated-interaction model of tax competition. In particular, the paper studies whether a fiscal transfer scheme promotes or blocks voluntary tax cooperation. It is shown that the larger the scale of fiscal transfer...

This article describes a quantitative analysis of Japanese equalisation transfers based on the fiscal externality models of Hartwick, Boadway and Flatters. In particular, it examines whether the actual level of equalisation transfers matches the theoretically optimal level from the efficiency...

Within the framework of spatial tax competition with cross-border shopping, we examine the choice of tax method between ad valorem tax and unit (specific) tax. This study shows that governments endogenously choose the ad valorem tax method not because of a classic welfare reason, but because it...

In this paper, we examine the effect on city size of household preference for product variety. There are many theoretical analyses that have attempted to clarify the determinants of city size in the urban literature. Comparative static analyses are used to find out what happens to the...