Abstract
Pecuniary externalities in a two-region economy are examined from several aspects. The analysis includes fiscal externality, inefficiency of free migration, and inefficiency of autarky non-wage income sharing. Measures to restore the productive efficiency that is lacking in the multiregion economy with local public goods are discussed. Finally, a new aspect of the interregional allocation of residential activities is analyzed as the economics of multi-habitation.
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Sakashita, N. Presidential address: Spatial interdependence and externalities. Papers of the Regional Science Association 67, 1–11 (1989). https://doi.org/10.1007/BF01934663
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DOI: https://doi.org/10.1007/BF01934663