This paper analyses the wage demands of a sector-level monopoly union facing internationally mobile firms. A simple two-country economic geography model is used to describe how firms relocate in function of international differences in production costs and market size. The union sets wages in...

The present paper describes the modelling of regional labour markets in the newly developed dynamic spatial general equilibrium model RHOMOLO, where the labour market equilibrium is determined by rms' labour demand, a wage-curve determining unemployment, and interregional labour migration. The...

Countries redistribute substantial amounts of wealth between regions through taxation and social security, even in the absence of an explicit regional policy. Economic theory suggests such redistribution might be distorting. This paper indeed finds that more redistribution leads to subsequent...

This paper investigates the role of political representation in explaining regional variation in fiscal transfers in Belgium. Using Eurostat data for the years 1995 to 2008, we find that on average per capita cash fiscal transfers – consisting of the net amount of federal income taxes and...