Local Public Goods and the Spatial Distribution of Economic Activity
نویسندگان
چکیده
Using French data, we provide: a) causal evidence that a drop in local public goods provision decreases private sector activity, and b) consistent with monopsony power of the labor markets. We introduce these two key characteristics an otherwise standard spatial equilibrium model, show it delivers main stylized facts established our particular, share relative to is independent productivity city. emphasize tradeoffs between allowing governments freely choose employment wages (as most US sector), versus imposing rules constrain pay some indexation cost living many European countries). wage limits -- leading larger optimal if sufficiently strong.
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2021
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.3832038