This paper theoretically and empirically explores the Linder conjecture (the home market effect (HME) in terms of trade pattern) in the environmental sector. Using a general-equilibrium model for a two-country two-sector economy, we demonstrate the existence of a strong/weak HME and the crucial...

This paper develops a general-equilibrium model with heterogeneous firms and a perfectly competitive labor market to explore the effects of minimum wages on welfare, inequality, and unemployment. We find that a low minimum wage may increase the social welfare, in which all labor groups are...

Unemployment has become a focal topic of discussion in applied economics. In this paper, we provide an integrated overview of recent theoretical studies that link unemployment problems to spatial economics. We introduce four mechanisms commonly used to consider unemployment in this field:...

Assuming an inelastic labor supply, existing studies on spatial inequalities across countries show that a larger country has the advantages of a higher wage rate and a higher individual income. This paper reexamines these results by use of a model with an endogenous labor supply and variable...