This paper develops an analytically solvable new economic geography model of the 'footloose entrepreneur' class in which not only skilled labor is mobile, but also unskilled labor. Allowing unskilled labor to move freely between different regions increases the agglomeration incentive of skilled...

This article reconsiders the linear new economic geography model under heterogeneous agents developed by Tabuchi and Thisse (2002) by applying an analytical technique introduced by Ludema and Wooton (1999). Two problematic aspects are identified first, the bifurcation pattern for countries which...

This article reconsiders the linear new economic geography model under heterogeneous agents developed by Tabuchi and Thisse (2002) by applying an analytical technique introduced by Ludema and Wooton (1999). Two problematic aspects are identified first, the bifurcation pattern for countries which...