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Regional policy analysis in a simple NEG model with vertical linkages.
(Working paper; Arbeidsnotat, 2008-03)
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 ...