This paper presents a new framework for modeling the fine microstructure of knowledge creation dynamics. Our focus is on the creation of working nowledge used in innovation, for example, the knowledge used by a researcher in the economics profession. The framework has been developed to address...

This paper demonstrates that a pollution tax with a fixed cost component may lead, by itself, to segregation between clean and dirty firms without heterogeneous preferences or increasing returns. We construct a simple model with two locations and two industries (clean and dirty) where pollution...