Recent literature on the workhorse model of intra-industry trade has explored heterogeneous cost structures at the firm level. These approaches have proven to add realism and predictive power. This paper presents a new and simple heterogeneous-firms specification. We develop a symmetric...

As part of a center - periphery model, we propose an analysis of the influence of a restrictive environmental policy on the location of polluting industrial firms. In this model, it is the location choices of skilled workers that determine the spatial distribution of these firms. In their...