López Rodríguez, Jesús; Martínez-López, Diego; … - In: Papers in regional science : the journal of the … 104 (2025) 6, pp. 1-18
In the foot-loose capital (FC) models, it is predicted that agglomeration forces create rents for the mobile factor (capital), which can be easily taxed, and therefore higher equilibrium tax rates are expected. In this paper, a highly flexible econometric specification (P-Spline spatial...