We consider the consequences of introducing a Superstore into a city segregated by income. In this monocentric city, consumers and firms live on a continuous line interval. Our model consists of two types of firms; many high-cost perfectly competitive ”Corner Stores” located throughout the...

Using a simple model of banking services we consider how deposit-taking banks price for their services and choose the type of deposit customers that they target. In considering a banking model with a consumer population heterogeneous in income we go beyond previous theoretical work on consumer...

We demonstrate how firm pricing strategy and determinants of household location can interact to determine city structure. We go beyond previous work on spatial income segregation by endogenizing the tradeoff between households' choice of location and shopping behavior, as well as solving for the...

Using a supply/demand consumer model with search, we show under what conditions the distribution of income within a community is related to the type of firms that exist within that community, impacting the level of prices. We assume that searching for the lowest price costs both time and money...

This paper analyses and quantifies the effects of trade liberalisation and skill-biased technical change, both exogenous and trade-induced, on the skill premium and real wages of unskilled and skilled workers in the Mexican manufacturing sector, using industry- and firm-level data for 1984-1990...

Panel data on 54 developing countries between 1960 and 2000 are used to investigate how the impact of opening to trade on economic growth is affected by wealth inequality.  The results suggest (a) that opening to trade tends to accelerate growth but (b) that the addition to growth depends...

This paper analyses the effects of trade liberalisation and technical change on real and relative wages.  It builds a model with monopolistic competition, heterogeneous firms and two countries, North and South, and solves it numerically.  Skill-biased technical change, caused by decreases in...

In this paper we investigate how firms adjust markups across products in response to fluctuations in the real exchange rate. In a theoretical framework, we show that firms increase their markup and producer prices following a real depreciation and that this increase is greater for products with...