Second nature geography variables are very relevant in the explanation of income disparities across regions within countries and across countries. This paper uses the framework of the New Economic Geography to derive the structural equation which relates nominal wages with a distance weighted...

We analyze the optimal regional pattern of public employment in an information-constrained second-best redistribution policy showing that regionally differentiated public employment can serve as an expenditure side tagging device, bypassing or relaxing the equity-efficiency trade-off. The...

This paper examines the relationship between openness and within-country regional inequality across 28 countries over the period 1975-2005, paying special attention to whether increases in global trade affect the developed and developing world differently. Using a combination of static and...