The model of compensating differentials in regional labor markets was developed by Roback(1982). The model interprets regional differences in constant quality wages and rents ascompensating firms and residents for inter-regional differences in amenities. The modelassumes that the costs of...

Persistent productivity gains to rural-urban migrants have been documented by a number ofresearchers. One interpretation of this result is that individuals learn higher value skills incities than they would have learned in less dense areas. Another explanation for this result,however, is that...

In this paper we survey the recent developments in two empirical literatures at the crossroadsof labor and urban economics: Studies about localized human capital externalities (HCE) andabout the urban wage premium (UWP). After surveying the methods and main results of eachof these two...

Carbon control policies in OECD countries commonly differentiate emission prices in favor of energy-intensiveindustries. While leakage provides a efficiency argument for differential emission pricing, the lattermay be a disguised beggar-thy-neighbor policy to exploit terms of trade. Using an...

We examine the role of spatial proximity for Venture Capital (VC) investments inGermany. The main database is a survey of 85 personal interviews withrepresentatives of different types of financial institutions. The analysis shows thatspatial proximity is far less important for VC investments...

We analyze the equilibrium and the optimal resource allocations in a monocentric city undermonopolistic competition. Unlike the constant elasticity of substitution (CES) case, wherethe equilibrium markups are independent of the city size, we present a variable elasticity ofsubstitution (VES)...

Recent theoretical models predict gains from international trade coming from intra-industryreallocations, due to a firm selection effect. In this paper we answer two related questions. First, whatis the magnitude of this selection effect, and how does it compare to that of intra-national trade...

This paper presents a framework for analysing the effects of economicdevelopment in Eastern Europe on Austria's regions. Therefore we concentrate on the effects of enhanced East-West trade, which results from the economic development in the transition countries.

This paper reports two laboratory studies designed to study the impact of public informationabout past departure rates on congestion levels and travel costs. Our experimental design isbased on a discrete version of Arnott, de Palma, and Lindsey’s (1990) bottleneck model wheresubjects have to...

The changeover from a situation of Autarky to a situation of Free-Trade alters the trade and production patterns of the participatingcountries which in turn affects the transportation-sector. The amountof transported goods and the directions of the good-flows change.Profit-oriented shipping...