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A Normative Analysis of Transport Policies in a Footloose Capital Model with Interregional and Intraregional Transportation Costs

Author

Listed:
  • Paul Chiambaretto

    (PREG-CRG - Pole de recherche en économie et gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

  • André de Palma

    (ENS Cachan - École normale supérieure - Cachan, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Stef Proost

    (KU Leuven - Catholic University of Leuven = Katholieke Universiteit Leuven)

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.

Suggested Citation

  • Paul Chiambaretto & André de Palma & Stef Proost, 2013. "A Normative Analysis of Transport Policies in a Footloose Capital Model with Interregional and Intraregional Transportation Costs," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01052639, HAL.
    • Handle: RePEc:hal:cesptp:hal-01052639
    DOI: 10.1007/s00168-013-0563-3
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    References listed on IDEAS

    as
    1. Philippe Martin, 1998. "Can Regional Policies Affect Growth and Geography in Europe?," Post-Print hal-03416388, HAL.
    2. Behrens, Kristian & Gaigne, Carl & Ottaviano, Gianmarco I.P. & Thisse, Jacques-Francois, 2006. "How density economies in international transportation link the internal geography of trading partners," Journal of Urban Economics, Elsevier, vol. 60(2), pages 248-263, September.
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    8. Charlot, Sylvie & Gaigne, Carl & Robert-Nicoud, Frederic & Thisse, Jacques-Francois, 2006. "Agglomeration and welfare: The core-periphery model in the light of Bentham, Kaldor, and Rawls," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 325-347, January.
    9. Miren Lafourcade & Jacques-François Thisse, 2011. "New Economic Geography: The Role of Transport Costs," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 4, Edward Elgar Publishing.
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    Cited by:

    1. Muhammad Imran & Gu Zhang & HuSen An, 2017. "Impact of market access and comparative advantage on regional distribution of manufacturing sector," China Finance and Economic Review, Springer, vol. 5(1), pages 1-14, December.

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    More about this item

    Keywords

    transport;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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