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The politics of infrastructure investment: The role of product market competition

Ghosh, Arghya; Meagher, Kieron

Description

In spatial competition, public infrastructure plays a crucial role in determining product market outcomes. In our model, consideration of infrastructure's impact on the product market drives the preferences of consumers in their dual role as voter/taxpayers. The spatial heterogeneity of consumers produces conflicting political interests and in many cases inefficient outcomes. However across both exogenous and endogenous market environments product market competition consistently leads to higher...[Show more]

CollectionsANU Research Publications
Date published: 2015
Type: Journal article
URI: http://hdl.handle.net/1885/98576
Source: Journal of Economic Behavior and Organization
DOI: 10.1016/j.jebo.2015.08.017

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