both supply and demand sides. It is shown that whether this total elasticity implies energy-capital complementarity or … substitutability to complementarity as the price of energy rises. This framework offers an additional way of reconciling apparently … conflicting findings on energy-capital complementarity and substitutability: an earlier suggestion was made by Berndt and Wood …

. We prove that with extreme-skill complementarity, the skill distribution has fatter tails in large cities; with top …-skill complementarity, there is first-order stochastic dominance. Using the model to back out skills from wage and housing price data, we … consistent with extreme-skill complementarity: the productivity of high skilled workers and of the providers of low skilled …

Three points are made in this article. First, it is argued that general equilibrium theory should not be limited to the …