School of Economics and Finance Working Paper Series
This paper shows that regional economies, such as federations or unitary countries with sub national governments, may need a system of optimal inter regional transfers to correct for various types of externalities related to factor mobility and location decisions. It is then argued that equalizatio...
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| Format: | Working Paper |
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School of Economics and Finance, Curtin Business School
2008
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| Online Access: | http://hdl.handle.net/20.500.11937/33358 |
| _version_ | 1848753923910795264 |
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| author | Petchey, Jeffrey |
| author_facet | Petchey, Jeffrey |
| author_sort | Petchey, Jeffrey |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This paper shows that regional economies, such as federations or unitary countries with sub national governments, may need a system of optimal inter regional transfers to correct for various types of externalities related to factor mobility and location decisions. It is then argued that equalization schemes which take account of the differing expenditure and revenue needs of regions, create a pattern of inter regional transfers of income, but that they are inconsistent with what is required for spatial efficiency. Therefore, equalisation is incompatible with the efficient spatial allocation of mobile factors of production. It is also shown that regions have an incentive to act strategically over equalization and distort their provision of local public goods. |
| first_indexed | 2025-11-14T08:32:14Z |
| format | Working Paper |
| id | curtin-20.500.11937-33358 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:32:14Z |
| publishDate | 2008 |
| publisher | School of Economics and Finance, Curtin Business School |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-333582017-01-30T13:36:42Z School of Economics and Finance Working Paper Series Petchey, Jeffrey regional economies migration inter governmental relations regional government behavior equalization inter-jurisdictional differentials spatial location This paper shows that regional economies, such as federations or unitary countries with sub national governments, may need a system of optimal inter regional transfers to correct for various types of externalities related to factor mobility and location decisions. It is then argued that equalization schemes which take account of the differing expenditure and revenue needs of regions, create a pattern of inter regional transfers of income, but that they are inconsistent with what is required for spatial efficiency. Therefore, equalisation is incompatible with the efficient spatial allocation of mobile factors of production. It is also shown that regions have an incentive to act strategically over equalization and distort their provision of local public goods. 2008 Working Paper http://hdl.handle.net/20.500.11937/33358 School of Economics and Finance, Curtin Business School fulltext |
| spellingShingle | regional economies migration inter governmental relations regional government behavior equalization inter-jurisdictional differentials spatial location Petchey, Jeffrey School of Economics and Finance Working Paper Series |
| title | School of Economics and Finance Working Paper Series |
| title_full | School of Economics and Finance Working Paper Series |
| title_fullStr | School of Economics and Finance Working Paper Series |
| title_full_unstemmed | School of Economics and Finance Working Paper Series |
| title_short | School of Economics and Finance Working Paper Series |
| title_sort | school of economics and finance working paper series |
| topic | regional economies migration inter governmental relations regional government behavior equalization inter-jurisdictional differentials spatial location |
| url | http://hdl.handle.net/20.500.11937/33358 |