This paper sets up a two country monopolistic competition model with intra-industry trade to study the effects of an exogenous differential in wage and social policies on the location of industry. Two model scenarios are considered. In the traditional one with physical capital, such a...

We analyze the possibility and consequences of coalition-formation amongst suppliers of retail services. We first provide a framework in which producers of Substitutes have an incentive to Cluster in market places in order to attract consumers dispersed in space. Owing to spatial externalities,...

This paper proposes the question whether or not traveling expenses to work should be deductible from the income tax base. In order to answer this question, a simple model of (im-) perfect household and worker mobility is employed. The focus of the analysis is on the efficient use of land and the...