Typically, a small and open economy trades goods at given world prices. Here, we present a model of a very open small economy, where capital and labor are internationally mobile, too. When investing into infrastructure, the economy’s government attracts not only mobile capital but mobile...

Dublin’s current boom shares many features with urban booms elsewhere. In this short paper, I suggest applying an open city framework to Dublin and looking at this framework’s implications for two policies closely related to housing. I conclude with a scheme that should accompany future...

Typically, a small and open economy trades goods at given world prices. Here, we present a model of a very open small economy, where capital and labour are internationally mobile, too. When investing into infrastructure, the economy’s government attracts not only mobile capital but mobile...

Close to 1,4 million flats are vacant in East Germany. Demolition is widely believed the adequate response. This paper argues that letting rents fall should be more attractive. Falling rents would permit households to reclaim, and hence benefit from, todayís vacant housing. Far from preventing,...

A country's urban silhouettes prophesy its future climate policy, or so this paper argues. The more its city silhouettes are skewed to the periphery, the more likely a country is to implement the carbon tax. This is why the effect of a country's urban form on greenhouse gas emissions -- a bone...

This paper argues that the more open a city is to immigration, the more likely it is to welcome -- and hence also receive -- foreign direct investment. If immigration is allowed to complement the inflow of foreign capital, urban rent rises by more. This extra rise in rent aids in appeasing...

Global emissions of carbon dioxide need to fall lest climate change will accelerate. Any effective climate policy must raise the price of carbon consumption. From an urban perspective, one desirable effect of a carbon tax would be to induce households to move closer to where they work. This...

Global emissions of carbon dioxide need to fall lest climate change will accelerate. Any effective climate policy must raise the price of carbon consumption. From an urban perspective, one desirable effect of a carbon tax would be to induce households to move closer to where they work. This...

Vacant housing and even housing demolition have recently become an issue in a number of countries. Given this renewed interest in demolition, this paper contributes to the literature on (i) housing demolition and (ii) policy coordination. The paper extends Sweeney’s (Econometrica...

One explanation of the recent real estate bubble might point to homeowners' artificially restricting housing supply. While empirical work has not found unequivocal evidence in support of this hypothesis, homeowners may well be restricting supply nonetheless, and without this restriction...