A normative analysis of transport policies in a footloose capital model with interregional and intraregional transportation costs

摘要

We introduce a distinction between interregional and intraregional transportation costs in a footloose capital model. This allows assessing more precisely the effects of different types of transport policies on the spatial distribution of activities. From a normative point of view, we find that, in the absence of regulation, the concentration of industrial activity is too high in the center. We show what set of interregional and intraregional transport policies improves the equilibrium.