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dc.contributor.authorPetchey, Jeffrey
dc.identifier.citationPetchey, Jeffrey (2008) School of Economics and Finance Working Paper Series, A theoretical analysis of equalisation and spatial location efficiency: no. 08:02, Curtin University of Technology, School of Economics and Finance.

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.

dc.publisherSchool of Economics and Finance, Curtin Business School
dc.subjectregional economies
dc.subjectinter governmental relations
dc.subjectregional government behavior
dc.subjectinter-jurisdictional differentials
dc.subjectspatial location
dc.titleSchool of Economics and Finance Working Paper Series
dc.typeWorking Paper
dcterms.source.seriesA theoretical analysis of equalisation and spatial location efficiency
curtin.accessStatusOpen access
curtin.facultyCurtin Business School
curtin.facultySchool of Economics and Finance

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