Regional policy analysis in a simple NEG model with vertical linkages.
The paper presents a simple three-region, two-sector general equilibrium model that is used for analysing the effect of regional tax policies. The model includes exogenous asymmetry in terms of transport costs as well as a vertical industry structure that can account for endogenous location development in order to distinguish between the effect of ‘first nature’ and ‘second nature’ on the required subsidy for meeting a population policy target.
A first version of this paper was presented at the 47th annual WRSA meeting and a seminar at Western Washington University in February 2008.
PublisherUniversitetet i Tromsø
University of Tromsø
SeriesWorking Paper Series in Economics and Management No. 03/08, March 2008
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