This paper revisits the home market effect (HME) without any homogeneous good by reconstructing the footloose capital model. This simple model analytically reproduces some typical results scattered in the existing literature, and also provides new insights. Firstly, we derive both spatial...

The present paper studies labour migration in the enlarged EU. Adopting the Krugman’s framework of the New Economic Geography, we are able to study both the determinants of labour migration, such as market potential, wages, cost of living on one hand, and labour migration on the other hand...

Based on a many-industry Chamberlinian-Ricardian trade model with iceberg trade costs, this note examines the impact of two modes of economic integration: a reduction in trade costs, and technical standardization due to information spillover. It is shown that these two modes of economic...

We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....

We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....

This paper explores the role of Standard Essential Patents (SEPs) in shaping technological development and regional innovation in Europe's telecommunications sector. Results reveal strong geographic concentration, particularly in Helsinki and Stockholm, which account for one-third of...

We develop a structural framework that allows us to quantify the evolution of aggregate bilateral trade costs and markups over time. With minimal assumptions, we can disentangle aggregate markup and trade cost changes from observed changes in trade flows. We apply our method to trade data...

This paper contrasts two dominant views of migration. One involves movements to arbitrage disequilibrium in labor markets, while the other takes a more urban economic view of equilibrium in which on-going migration is seen as a response to changing demands for non-traded amenities as incomes...

The US population has been migrating to places with high perceived quality of life. Theoretically, such migration can follow from the increasing demand for amenities that accompanies increasing wealth. Under the baseline calibration of a general equilibrium model, a place with amenities for...

This paper models and estimates bilateral trade patterns of U.S. states in a CES framework and identifies the elasticity of substitution across goods, the elasticities of substitution across varieties of each good, and the good-specific elasticities of distance by using markup values obtained...