In this paper, we first examine empirically the Balassa-Samuelson effect in the presence of structural change. Using cross-country data on per capita income, price level and employment shares by sector, we find that a country’s tradable sector’s share of employment is a more...

International trade and the internal movement of goods and people are closely related. China – increasingly open and with massive internal migration flows – provides an ideal setting to study these interrelationships. We develop a general equilibrium model of internal and external...

A model of a city comprised of heterogeneous neighborhoods featuring different levels of amenities, populated by households differing in income and preference for housing services is developed. Houses are constructed by a competitive development industry and either rented or sold to households...