The terrorist attacks of September 11, 2001, present significant challenges for policymakers at all levels of government. Since terrorism seems to present particularly acute risks for core urban areas, it may influence economic and policy decisions in ways that affect the spatial distribution of...

This paper analyzes fiscal competition among numerous spatially- separated jurisdictions in an explicitly dynamic framework. The degree of factor mobility between jurisdictions is imperfect because it is costly and time-consuming to adjust factor stocks. Even if it is harmful in the long run,...