. We prove that with extreme-skill complementarity, the skill distribution has fatter tails in large cities; with top …-skill complementarity, there is first-order stochastic dominance. Using the model to back out skills from wage and housing price data, we … consistent with extreme-skill complementarity: the productivity of high skilled workers and of the providers of low skilled …

production sectors hit capacity limits? Here I exploit the complementarity approach to general equilibrium, focusing on modeling … number of firms that can enter in each firm type. Formulated as a non-linear complementarity problem, we can solve for the …