This paper investigates the impacts of progressive trade openness, technological externalities,and heterogeneity of individuals on the formation of entrepreneurship in a two-countryoccupation choice model. We show that trade opening gives rise to a non-monotonic processof international...

The heterogeneity of the available physical capital with respect to productivity and emissionintensity is an important factor for policy design, especially in the presence of emissionrestrictions. In a vintage capital model, reducing pollution requires to change the capitalstructure through...

In this paper we build a quality-augmented version of an economic geography model whereconsumers have heterogenous tastes for a set of manufacturing varieties. We discuss afootloose capital model and a footloose entrepreneur model. We show that firms selling thegoods with higher values select...

We distill the main insights from recent trade models on firms' responses toglobalization. Our primary aim is to assess the economic impact and the welfareimplications of the resulting reallocation of resources across frims and countries. In sodoing, we bring theory into life through the...