We study the properties of spatial equilibrium in an economy where locations have heterogeneous endowments and the labour market is subject to matching frictions. Both workers and firms make endogenous location decisions, which, in turn, determine the spatial distribution of unemployment, wage...

In this paper, a spatial price equilibrium model with information asymmetry in quality is developed. Producers at the supply markets are aware of the quality of their products, whereas consumers, located at the demand markets, are aware only of the average quality of the products that are...

This paper develops a model of the geographic distribution of crime in an urban area. When the police protect some neighborhoods (concentrated protection), the city becomes segregated. When the police are evenly deployed across the city (dispersed protection), an integrated city emerges. Unequal...

We study state taxes as a potential source of spatial misallocation in the United States. We build a spatial general equilibrium framework that incorporates salient features of the U.S. state tax system, and use changes in state tax rates between 1980 and 2010 to estimate the model parameters...

This paper discusses the reasons for the spatial impossibility theorem, which states that the competitive paradigm cannot explain the formation of large urban agglomerations and trade flows. This result is especially meaningful insofar as it is internal to the theory itself. We then briefly...

This paper develops a model of the geographic distribution of crime in an urban area. When the police protect some neighborhoods (concentrated protection), the city becomes segregated. When the police are evenly deployed across the city (dispersed protection), an integrated city emerges. Unequal...

Are the well-known facts about urbanization in the United States also true for the developing world? We compare American metropolitan areas with comparable geographic units in Brazil, China and India. Both Gibrat's Law and Zipf's Law seem to hold as well in Brazil as in the U.S., but China and...

Are the well-known facts about urbanization in the United States also true for the developing world? We compare American metropolitan areas with comparable geographic units in Brazil, China and India. Both Gibrat's Law and Zipf's Law seem to hold as well in Brazil as in the U.S., but China and...