The trade literature often treats countries as dimensionless points, which is a strong assumption. Agglomeration or lumpiness of production factors within countries can affect the national pattern of trade. In this paper we analyze comparative advantage patterns for 22 cities and 4 regions for...

"The purpose of our book is to offer an introduction to urban and geographical economics, the two dominant approaches in mainstream economics to explain the distribution of economic activity across space. The fact that we offer an 'introduction' does not mean that we avoid models or shy away...

In contrast to empirical evidence, recent theories of cross-border mergers and acquisitions (M&As) assume perfect knowledge transfers - from high to low productivity firms - between acquirer and target. Using the Melitz (2003) model of heterogeneous firms, we develop a matching model of...