We analyze the impact of preference matching and income on the distribution of the population in an aggregate economy of an urban and an adjacent rural region. It costs more (less) to live in the urban (rural) region. Individuals choose to live either in the urban or in the rural region. They...

This article addresses the problem faced by an asymmetrically informed supra-national governmental authority (SNGA) with limited funds that wishes to design an international environmental agreement (IEA) for less developed countries (LDCs). The SNGA can only deal with polluting firms in the LDCs...