Interest groups are introduced in a spatial model of electoral competition between two political parties. We show that the presence of these interest groups increases the winning set, which is the set of policy platforms for the challenger that will defeat the incumbent. Therefore interest...

While many empirical studies show that participation in rural labor markets is an important household livelihood strategy, data on Tanzania show that the participation in the rural labor markets is still relatively low. This study examines the factors behind the development of village labor...

A linearized version of Pinkse and Slade's (1998) spatial probit estimator is used to account for the tendency of auto supplier plants to cluster together. By reducing estimation to two steps - standard probit or logit followed by two-stage least squares - linearization produces a model that can...

We investigate the convergence process among EU regions between 1980-2002 taking into account the effects of spatial heterogeneity and spatial spillover effects. The spatial regimes model allows for different steady-state growth paths. In contrast to previous analyses, the regimes in this paper...

There are a number of theoretical reasons why FDI into a host country may depend on the FDI in proximate countries. Such spatial interdependence has been largely ignored by the empirical FDI literature with only a couple recent papers accounting for such issues in their estimation. This paper...

A model of fiat money is constructed in which spatial separation and the logistics of communication are made explicit as in search theory, but exchange is organized by profit-seeking business enterprises as in all market economies. Firms mitigate search costs by opening shops that are easily...