Although natural hazard insurance is advocated as an important means of risk management, private insurance demand often remains below critical levels. Prior loss experience and the design of governmental relief schemes are two factors potentially influencing insurance decisions. We address these...

This paper analyses the effects of the creation or removal of borders on firms' profits and their optimal location in an autarkic region. A firm chooses a position close to a border if a crucial degree of openness is achieved. Furthermore, the positive effect of removal of borders decreases in...