We follow Batabyal and Beladi (2014, 2015) and theoretically study a regional economy that produces a final consumption good with physical and creative capital. However, in contrast with the approach taken in the above two papers, in our model, the means for obtaining acquired creative capital...

We first construct a theoretical model of a regional economy that produces a final consumption good such as a knowledge good with two factors of production, namely, physical and creative capital. Next, we analyze the creative capital accumulation decision faced by individuals in this regional...

We first construct a theoretical model of a regional economy that produces a final consumption good such as a knowledge good with two factors of production, namely, physical and creative capital. Next, we analyze the creative capital accumulation decision faced by individuals in this regional...

We analyze the impact of preference matching and income on the distribution of the population in an aggregate economy consisting of an urban and an adjacent rural region. It costs more (less) to live in the urban (rural) region. Individuals choose freely to live either in the urban or in the...

Using a dual structure depicting a developing economy, this paper shows that an increase in asset inequality can lead to wage inequality between skilled and unskilled labor. In addition, increasing asset inequality raises the luxury goods price and hence the unemployment ratio. These effects...

We introduce international labor mobility in a three-sector general equilibrium model with rural-urban migration. We demonstrate that under some reasonable conditions an inflow of foreign skilled labor (capital) can reduce skilled-unskilled wage inequality

We analyze the impact of preference matching and income on the distribution of the population in an aggregate economy consisting of an urban and an adjacent rural region. It costs more (less) to live in the urban (rural) region. Individuals choose freely to live either in the urban or in the...

We analyze the impact of preference matching and income on the distribution of the population in an aggregate economy of an urban and an adjacent rural region. It costs more (less) to live in the urban (rural) region. Individuals choose to live either in the urban or in the rural region. They...

We first construct a theoretical model of tax evasion in a stylized developing country in which all taxpayers have either high or low income. The key problem is that the high income taxpayers may underreport their income. An individual income tax return can only be verified with an audit that...

We analyze a market for microfinance in a region of a developing nation in which all projects are either of high or low quality. There is adverse selection because only borrowers know whether their project is of high or low quality but the microfinance institutions (MFIs) do not. The MFIs are...