We analyze two hitherto little studied but salient questions concerning the trinity of asymmetric information, entrepreneurial activity, and the scope of fiscal policy in an open regional economy. First, we use a two period model to analyze the contractual relationship between entrepreneurs and...

We study the decision problem faced by a city authority (CA)who seeks to attractmembers of the creative class to his city by providing amenities. Creative class members careabout their own incomes and about the amenities that the city provides. We construct astylized model of this interaction...