We develop a general equilibrium model with three primary production factors - land, skilled, and unskilled labor - and three sectors - construction, intermediate inputs, and final consumption - to study how different intensities of telecommuting affect the efficiency of firms that embrace home...

We develop a model of a city populated by heterogeneous agents. Agents self-select into entrepreneurship, and entrepreneurs set up firms which hire workers. We characterize the equilibrium matching between firms and workers, as well as the within-city assignment of agents to locations. We then...

We study the effect of international trade and freeness of trade (openness) on interregional inequality within countries. We estimate a model derived from a structural economic-geography approach in which interregional inequality depends on weighted trade shares and trade costs. In addition to...