Abstract ：
　The purpose of this paper is to investigate the central government’s redistribution policies across local governments that affect regional agglomeration. The local government provides the local public good that has the centripetal force in the distribution of population. In this regional economy, only one region produces the manufactured goods. For the production of the good, it is desirable that all workers concentrate in that region. In this case, this paper analyzed whether or not the central government should adjust the distribution of populations through local governments.
　The result is as follows: If individuals are relatively immobile, i.e., the migration cost is large, the central government should transfer from the non-production region to the productive region because it should adjust the smaller agglomeration in the productive region. On the other hand, if the migration cost is small, the central government should transfer from the productive region to non-production region because it should adjust the excess agglomeration and income distribution. For deciding the central government’s adjustment policy, it is important to consider the migration cost.

JEL classification: R12; H41; H50; H72
Keywords: Agglomeration, Local government, Central government, Population, Migration cost