This paper proposes, estimates, and tests a “no-frills†static two-equation recursive model, where the size of the largest city depends on the level of development in a two-step relationship, with the total urban population intervening as an intermediate variable. The model has the...

This paper presents an applied computable general equilibrium world model with financial assets and endogenous current account, and capital and financial account balances. The capital and financial account equilibrium conditions, rather than exogenous rules, constrain the current account...