Which Communities Should Be Afraid of Mobility ? the Effects of Agglomeration Economies on the Sensitivity of Firm Location to Local Taxes

@inproceedings{JofreMonseny2009WhichCS,
  title={Which Communities Should Be Afraid of Mobility ? the Effects of Agglomeration Economies on the Sensitivity of Firm Location to Local Taxes},
  author={Jordi Jofre-Monseny and Albert Sol{\'e}-Oll{\'e}},
  year={2009}
}
This paper examines the effects of agglomeration economies (AE) on the sensitivity of firm location to tax differentials. An initial reading of the story suggests that, with AE, when a firm moves into a community attracted by a tax reduction, other firms may decide to move in as well. This suggests that AE increase the sensitivity of firm location to local… CONTINUE READING