This paper shows, using data from both the US and the UK, that average plant size is larger in denser markets. However, many popular theories of agglomeration spillovers, cost advantages and improved match quality predict that establishments should be smaller in cities. The paper proposes a...

Recent empirical work suggests that how an individual responds to a tax depends at least in part on the tax's salience. The more salient a tax is, the more taxpayers adjust their demand in response to changes in the taxed good's after-tax price. If tax salience affects behavior, a natural...