Simple theories about why parents give money to their children fail to explain a central puzzle in inter-generational transfers: While parents are alive, they give more money to their poorer children. Bequests, by contrast, are typically divided evenly between children. We construct a model in...

Does trade liberalization increase competition? Location models provide a natural tool for answering this question, but, because of technical problems, their use in the trade literature has been limited. This paper develops a novel location model which is robust to arbitrary differences in...