Space matters not only by inducing transport costs but also by mitigating pollution damages. Previous models of pollution either disregard space altogether or presume a predetermined separation between polluters and pollutees. In our model, workers commute to factories and all possible location...

This study utilises a precise diagrammatic exposition to analyse issues involving the existence and stability of cities, land rents, and private and public local finance. In spite of the limitations of the exposition (such as having only two dimensions) the model is very general, primarily due...