Research on the spatial aspects of economic activity has
flourished over the past decade due to the emergence of new theory,
new data, and an intense interest on the part of policymakers,
especially in Europe but increasingly in North America and
elsewhere as well. However, these efforts--collectively known as
the "new economic geography"--have devoted little attention to the
policy implications of the new theory.
"Economic Geography and Public Policy" fills the gap by
illustrating many new policy insights economic geography models can
offer to the realm of theoretical policy analysis. Focusing
primarily on trade policy, tax policy, and regional policy, Richard
Baldwin and coauthors show how these models can be used to make
sense of real-world situations. The book not only provides much
fresh analysis but also synthesizes insights from the existing
literature.
The authors begin by presenting and analyzing the widest range
of new economic geography models to date. From there they proceed
to examine previously unaddressed welfare and policy issues
including, in separate sections, trade policy (unilateral,
reciprocal, and preferential), tax policy (agglomeration with taxes
and public goods, tax competition and agglomeration), and regional
policy (infrastructure policies and the political economy of
regional subsidies). A well-organized, engaging narrative that
progresses smoothly from fundamentals to more complex material,
"Economic Geography and Public Policy" is essential reading for
graduate students, researchers, and policymakers seeking new
approaches to spatial policy issues.
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