The paper embeds child labor in a standard two-sector general-equilibrium model of a small open economy facing perfectly competitive markets, efficiency wages, and free-trade. The modern sector produces a homogeneous good using skilled adult labor and capital, and offers effort-based efficiency...

This paper revisits the home market effect (HME) without any homogeneous good by reconstructing the footloose capital model. This simple model analytically reproduces some typical results scattered in the existing literature, and also provides new insights. Firstly, we derive both spatial...

Unemployment has become a focal topic of discussion in applied economics. In this paper, we provide an integrated overview of recent theoretical studies that link unemployment problems to spatial economics. We introduce four mechanisms commonly used to consider unemployment in this field:...