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The Gap between Free Market and Social Optimum in the Location Decision of Economic Activity

机译：经济活动区位决策中自由市场与社会最优之间的鸿沟

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摘要

This article presents a simplified model for comparison of the spatial distribution (core-periphery) of economic activity resulting from free market conditions, with the distribution that would lead to a social optimum. It further examines the public policy measures required to lead the economy towards the optimal distribution. Simulations are conducted to illustrate the mechanism of intervention of public policy and to test the feasibility of various measures. An important conclusion is that public investment in the creation of competitive ability in the periphery may provide the solution to market failure and therefore lead to the achievement of a social optimum greater than the free market optimum. Another preliminary conclusion is that public policy should consider a combination of measures (such as improving both regional infrastructure and the quality of the labour force), since focusing on a single measure may not be sufficient to achieve a social optimum.
机译：本文提供了一个简化的模型，用于比较由自由市场条件导致的经济活动的空间分布（核心-外围），以及导致社会最优的分布。它进一步研究了引导经济走向最佳分配所需要的公共政策措施。进行模拟以说明公共政策干预的机制，并测试各种措施的可行性。一个重要的结论是，在外围创造竞争能力的公共投资可以为解决市场失灵提供解决方案，从而导致实现大于自由市场最优的社会最优。另一个初步结论是，公共政策应考虑多种措施的结合（例如改善区域基础设施和劳动力素质），因为仅关注一种措施可能不足以实现社会最优。

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  • 来源
    《Urban Studies》 |2009年第10期|2045-2059|共15页
  • 作者

    Miki Malul; Raphael Bar-El;

  • 作者单位

    Department of Public Policy and Administration, Ben Gurion University, Beer Sheva, 84000, Israel;

    Department of Public Policy and Administration, Ben Gurion University, Beer Sheva, 84000, Israel;

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  • 正文语种 eng
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