on border effects in domestic and international trade. Our theory shows that larger countries are systematically … effects. We test our theory on domestic and international trade flows at the level of U.S. states. Our results confirm the …

individual’s decision to start a business is determined by his or her age and, therefore, that a change in a region’s age … distribution affects the expected number of startups in the region. Using German regional data, we estimate a count-data model and …

means and volatilities of partners' incomes are also derived from the theory and tested …

This paper studies a two-region model in which unemployment, education decisions and interregional migration are … endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are … disproportionately skilled. The brain drain from the poor to the rich region is accompanied by stronger incentives to acquire skills even …