Unless free international lending/borrowing is allowed, domestic saving equals domestic investment and hence saving and investment taxes have the identical effect, as is the case in a closed-economy context. However, if it is allowed, households can accumulate foreign assets besides domestic...

This paper examines the possibility of the existence of bubbles and their effects on the growth rate by using an endogenous growth model. A necessary and sufficient condition for the existence of steady-state equilibrium with bubbles is provided. If non-zero rates of the useless asset supply are...

Many cities are located on rivers or coasts. Such cities developed as transportation hubs or markets for interregional trade, since these locations provide better access to other regions. Local products are collected at such hubs, and interregional trade then takes place among these...