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We study optimal spatial policies in quantitative trade and geography frameworks with spillovers and sorting of heterogeneous workers. We characterize the spatial transfers that must hold in efficient allocations, as well as labor subsidies that would implement them. Assuming homogeneous workers...
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The Government of India initiated a program in 1994 to promote manufacturing in districts designated as backward. The way the backward districts were identified enables us to employ a regression discontinuity design to evaluate the impacts of the program. We find that the program's 5-year tax...
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Although the process of innovation is a crucial aspect of economic growth, there is less clarity about the measurement of economically useful ideas. Determining the extent to which different types of institutions contribute to the creation of new knowledge is essential for a deeper understanding...
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In cities, complementarity between a low-skilled and a high-skilled workforce can promote each other to improve labor … workforce in cities in the People's Republic of China (PRC) along with its changes, and drew the following three conclusions …. First, a highly skilled workforce is the engine of urban development, increasing urban wages and population. Second, big …
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