We wish to study optimal dynamic nonlinear income taxes. Do real-world taxes share some of their features? What policy prescriptions can be made? We study a two-period model, where the consumers and government each have separate budget constraints in the two periods, so income cannot be...

In his 1964 book, W. Alonso proposed several concepts of land-use equilibrium in terms of discrete population. However, the so-called new urban economics has been concerned exclusively with continuous population models. It is the authors' belief that in order to develop logical foundations for...

This article presents a micromodel of knowledge creation through the interactions among a group of people. The model features myopic agents in a pure externality model of interaction. Surprisingly, for a large set of initial conditions we find that the equilibrium process of knowledge creation...

We explore the characteristics of Pareto-optimal allocations in the context of local public goods or clubs. A set of first-order conditions for Pareto optimality is provided. Classical treatments apparently neglect an important term related to migrant compensation, and thus are incorrect. A...

We make two contributions to the theory of optimal income taxation. First, assuming conditions sufficient for existence of a Pareto optimal income tax and public goods mechanism, we show that if agents' preferences satisfy an extended notion of single crossing called capacity constrained single...

Applications of the framework of behavioral economics to questions arising from urban economics are discussed. Directions for future research are outlined. Copyright (c) 2009, Wiley Periodicals, Inc.

type="main" <title type="main">ABSTRACT</title> <p>We consider information aggregation in national and local elections when voters are mobile and might sort themselves into local districts. Using a standard model of private information for voters in elections in combination with a new economic geography model, agglomeration...</p>

A model with a finite number of consumers trading in land that can be changed through production is examined. Unlike most other models in urban economics, land is modeled as measurable subsets of a compact set. Formally, there are three major results. Conditions are found under which a solution...

Conventional wisdom tells us that with no market failure and local nonsatiation of preferences, the core is at least as large as the collection of competitive equilibrium allocations. We confirm this for a standard model featuring private ownership of land. Next we consider the public land...