Recent studies find wage subsidies (WS) to be superior to negative income tax (NIT). However, these studies suffer from a serious aggregation problem. A model is suggested in which these aggregation problems are avoided. In this model there exists a WS schedule that increases labor supply...

This paper presents a general equilibrium study of pollution in a system of cities. Pollution is associated with the production of a single commodity and there is no intercommunity spillover of pollution. All commodities can be traded between communities. The optimal intercommunity allocation of...