Permana and Miyata (2009) showed a partial equilibrium urban economic model to explain the existence of illegal settlements in flood prone areas in Palangkaraya City in Central Kalimantan Province, introducing the expected damage rate on household asset. Applying this new idea, one can derive...

A growing literature suggests that high-income countries export high-quality goods. Two hypotheses may explain such specialization, with different implications for welfare, inequality, and trade policy. Fajgelbaum, Grossman, and Helpman (JPE 2011) formalize the Linder (1961) conjecture that home...