In this innovative book the author examines the link between environmental, trade and industrial policies within an interregional setting. He models how regional governments, using tax rates on real capital and pollutant emissions, determine policies to favour their residents in terms of the...

We explore the Alchian–Allen effect–that is, the effect of an absolutely equal increase in the price of two goods on their demand ratio–for conditional (viz. short-run) and unconditional (viz. long-run) demand functions. We show that the Alchian–Allen effect for unconditional demand...