Subsidies to poor regions and inequalities: some unpleasant arithmetic
分析在集聚力和企业可移动条件下，对贫困地区的不同区域补贴如何影响产业布局、就业、收入不平等和福利，发现低贸易成本时补贴对布局影响更大，且可能加剧不平等。
This paper analyzes the effect of different regional subsidies to poor regions on industrial location, employment, income inequality and welfare in the presence of agglomeration forces when firms are mobile. The impact on location of such subsidies is stronger when trade costs are low. With mobile capital, regional subsidies such as tax breaks in the poor region lead to higher profits for firms in both regions. If financed at the national level, such subsidies given to firms in the poor region increase inequality between and within regions. Finally, with relocation costs, such regional subsidies may hurt the poor region. Copyright 2006, Oxford University Press.