This paper employs the Chi-value to analyse who benefits from investments in general or in specific human capital, the employer or the employee. Within this framework, we replicate the standard results of human capital theory.

Summary This paper employs the χ-value to analyse who benefits from investments in general or in specific human capital, the employer or the employee. Within this framework, we replicate the standard results of human capital theory.

This paper is a contribution to economic geography that leans on cooperative game theory. In particular, we envision towns (that are protected by walls) versus countryside where such protection is missing. An extension also provides a basic theory of when trading routes will be protected.

Summary This paper is a contribution to economic geography that leans on cooperative game theory. In particular, we envision towns (that are protected by walls) versus countryside where such protection is missing. An extension also provides a basic theory of when trading routes will be protected.