We examine the short- and long-term effects of urbanization, via favorable urban development policies, on income distribution and social welfare for a developing country. The urban manufacturing sector is characterized by imperfect competition and free entry. Urbanization shifts rural workers to...

This paper examines the short- and long-term effects of urbanization, via favorable urban development policies, on income distribution and social welfare for a developing country. The urban manufacturing sector is characterized by imperfect competition and free entry. Urbanization shifts rural...

This paper examines the effects of tourism in a dynamic model of trade on unemployment, capital accumulation and resident welfare. A tourism boom improves the terms of trade, increases labor employment, but lowers capital accumulation. The reduction in the capital stock depends on the degree of...

In the literature, the beneficial result of immigration to the host country relies on the assumption of perfect competition in the goods market. However, for an economy characterized by imperfect competition, immigration of unskilled workers can be welfare-reducing. The entry of skilled workers...

Credit rationing in the presence of asset inequality affects production and trade pattern in this paper, but not in the conventional way. A Ricardian general equilibrium framework with heterogeneous levels of asset ownership is developed to show that more equal asset distribution may contract...

In this note, we analyze a simple auction mechanism for locating noxious facilities such as hazardous waste dumps, prisons, and trash disposal plants. Specifically, we first delineate the details of our auction mechanism. Next, we solve for the symmetric equilibrium of this auction. Finally, we...

We analyze the activities of an entrepreneur who must, at each date, decide whether to search for a new production technique or to produce output with an extant technique. Our analysis leads to four results. First, we show that if our entrepreneur rejects a particular production technique at a...

We exploit the public good attributes of Ganges water pollution cleanup and theoretically analyze an aggregate economy of two cities---Kanpur and Varanasi---through which the Ganges flows. Our specific objective is to study whether water pollution cleanup in these two cities ought to be provided...