This paper analyzes liability rules when consumers and third parties/the environment incur harm. Expected harm is convex in the level of output and modeled as a power function. We show that the social ranking of liability rules previously established for the case in which only consumers suffer...

The present paper describes the modelling of regional labour markets in the newly developed dynamic spatial general equilibrium model RHOMOLO, where the labour market equilibrium is determined by firms' labour demand, a wage-curve determining unemployment, and interregional labour migration. The...

This paper derives a gravity equation for commuter flows from a spatial labor market model based on the seminal trade paper by Anderson and Van Wincoop (2003) and uses it to identify the effect of regional borders on commuting. This approach allows us to identify the relevant control variables...