The Annals of Regional Science

, Volume 51, Issue 3, pp 811–831 | Cite as

A normative analysis of transport policies in a footloose capital model with interregional and intraregional transportation costs

Original Paper

Abstract

We introduce a distinction between interregional and intraregional transportation costs in a footloose capital model. This allows assessing more precisely the effects of different types of transport policies on the spatial distribution of activities. From a normative point of view, we find that, in the absence of regulation, the concentration of industrial activity is too high in the center. We show what set of interregional and intraregional transport policies improves the equilibrium.

JEL Classification

R11 R12 R13 R42 R48 R58 

Notes

Acknowledgments

Paul Chiambaretto would like to thank Thierry Mayer for his useful comments on the first draft of this paper. Jacques Thisse also provided useful comments on the topic treated here. We also benefited from the comments of Elijah DePalma. André De Palma and Stef Proost acknowledge the support of the French PREDIT research programme no 09 MT CV 14 and of the Sustaincity project (FP7- EU). The third author thanks also FWO Flanders.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  • Paul Chiambaretto
    • 1
  • André De Palma
    • 2
    • 3
  • Stef Proost
    • 4
  1. 1.PREG-CRGEcole PolytechniquePalaiseauFrance
  2. 2.ENS CachanCachanFrance
  3. 3.Centre d’Economie de la SorbonneUniversity Paris IParisFrance
  4. 4.Center for Economic StudiesKU LeuvenLouvainBelgium

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