The paper builds a two-sector general-equilibrium model, with one homogeneous and one differentiated good. The differentiated good has increasing returns to scale. Preferences are nonhomothetic with a hierarchy of wants. Income distribution is determined by the ownership of inputs and endogenous...

This paper investigates the incidence of poverty in Indian towns and cities of various sizes of population. It also tests the hypothesis that larger towns and cities, because of their size, are capable of supporting more complex economic activities, improving labor productivity, and hence...