This paper demonstrates that a pollution tax with a fixed cost component may lead, by itself, to segregation between clean and dirty firms without heterogeneous preferences or increasing returns. We construct a simple model with two locations and two industries (clean and dirty) where pollution...

We explore how the possibility of remote electronic access to markets, resources and knowledge, enabled by the new information and communication technologies (ICTs), might change the motivations of firms to locate activities internationally, and in turn affect world-wide dispersion and...

Economic activities are highly clustered. Why is geographic concentration becoming a predominant feature of industrialized economies? On the basis of the empirical models developed by the theories of international trade, our answer is that increasing returns are the driving force of economic...