Market size and transport costs are important ingredients of international trade. We propose a look at these issues from a different perpspective. Using a Hotelling duopoly model with quadratic transport costs, we analyze the welfare effects of international trade between two countries which...

We consider an economic geography model of a new genre: all firms and workers are mobile and their agglomeration within a city generates rising urban costs through competition on a land market. When commuting costs are low (high), the industry tends to be agglomerated (dispersed). With two...

We consider the following stage game: a domestic government chooses an import quota, the a domestic and a foreign firm choose their quality level before engaging a price competition. We first show that the indirect effect of the quota on the sales of the domestic producer are different depending...

In this paper, the authors consider a European industry characterized by vertical product differentiation. Using a two-stages model with quality choice made before price competition takes place, the authors show that EU antidumping policy that takes the form of price-undertaking offers a...

There is a wide consensus among international institutions and national governments in favor of compact (i.e. densely populated) cities as a way to improve the ecological performance of the transport system. Indeed, when both the intercity and intra-urban distributions of activities are given, a...

We analyze how the interplay between urban costs, wage wedges, and trade costs may affect the interregional location of firms as well as the intraurban location, within the central business district or in a secondary employment center (SEC) of the selected region. In this way, we investigate, on...

This paper explores the interplay between commodities’ transportation costs and workers’ commuting costs within a general equilibrium framework `a la Dixit-Stiglitz. Workers are mobile and choose a region where to work as well as an intraurban location where to live. We show that a more...

In this paper, we analyze the trade war between two large countries when the trade policy is decided through majority voting. We show how the trade war equilibrium depends on the median voter production factor relative endowment. We compare this equilibrium to the one analyzed by Johnson where...

The paper shows that global pollution need not rise under free trade in goods and/or emissions even in the complete absence of income effects. Differences in environmental concerns across the countries lead to differences in the pollution-intensity of production and thus generate the possibility...

We incorporate equilibrium unemployment due to imperfect matching into a model of trade in intermediate inputs (Ethier (1982)). Firms are assumes to be price takers and their size is given by technology. Firms enter the market as long as expected profits cover the search cost they incur...