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Pollution-intensive industries are generally characterized by imperfect competition, increasing returns to scale and …-border pollution which reduces cross-setoral production in agriculture. Firms can freely move across country borders, but not workers …. First, we show that pollution lowers local income since it reduces agricultural production. This income-reduction effect …
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spatial Dubin model to empirically analyze the possible spatial effects between industrial agglomeration and air pollution at … between industrial agglomeration and air pollution, namely, with the deepening of industrial agglomeration, the air pollution … industrial agglomeration on neighbor air pollution also presents an inverted "N" shape, denoting that local industrial …
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Ellison and Glaeser's (1997) index of geographical concentration distinguishes between natural advantages and spillovers as a source of industrial agglomeration, but the well-known 'observational equivalence' means little is known about the relative importance of these. This paper uses the...
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A Melitz-style model of monopolistic competition with heterogeneous firms is integrated into a simple New Economic Geography model to show that the standard assumption of identical firms is neither necessary nor innocuous. We show that re-locating to the big region is most attractive for the...
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