This paper examines how impatience interacts with inequalities in economic development. We consider two distinct groups of households (i.e., with intrinsic inequality), and show that (i) under decreasing marginal impatience (DMI), an unequal society may be preferable for poor households; (ii)...

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...

Assuming an inelastic labor supply, existing studies on spatial inequalities across countries show that a larger country has the advantages of a higher wage rate and a higher individual income. This paper reexamines these results by use of a model with an endogenous labor supply and variable...