This paper develops a two-sector model for a renewable natural resource based economy. Pareto efficient results show the optimal harvesting rate that allows for sustained long-run optimal growth, which is upper-bounded by the biological rate of reproduction. Regulation prevents from resource...

We consider the core-periphery model by Krugman (1991). The nature and stability of the possible steady states of the model have been made progressively precise, see Fujita et al. (1999) and Baldwin et al. (2003). In that model as well as in all the new economic geography models that have been...

We develop a model of endogenous party platform formation in a multidimensional policy space. Party platforms depend on the composition of the parties? primary electorate. The overall social outcome is taken to be a weighted average of party platforms and individuals vote strategically....

This paper surveys some recent developments in the literature which studies continuous-timeevolutionary dynamics in the context of economic modeling.

We show that in the Uzawa-Lucas model with externality in human capital with agents that value both consumption and leisure, the government pursuing the first best can achieve its goal by subsidizing the foregone earnings while studying. The subsidy should be financed by a schooling fee. We...

This paper uses a model with a matching function in the labor market, where matches last for one period, to obtain the amount of frictional and non frictional (rationed/disequilibrium) unemployment for different standard wage-setting rules when there are matching frictions. We also compute the...

This paper questions the empirical evidence of the relationship between inequality and growth on the basis of the estimation of convergence equations. The criticisms are aimed in two directions - at the quality of the data and at the standard estimation procedure. It begins by describing in...

This work presents a clearer way of solving the optimisation problem addressed by Selden and Song (1995)in order to derive the J curve for abatement. The proposed framework is also extended to a two-country model.Results are consistent, also for the two country case, with empirical evidence that...

We explore an economy with two regions and independent local administrations. Local governments collect taxes to finance public education, but once educated agents can choose to migrate to the other region. The Nash equilibrium of the long-run game between the two governments is compared to a...

This paper shows, within a Heckscher-Ohlin version of the two-sector neoclassical growth model, that land, besides having long-run effects, is also a main determinant of the speed of convergence toward the steady state when there are cross-sector capital share differences. This result stands in...