This paper offers a novel explanation for urban blight and endogenous divergence in the overall quality and wealth of neighborhoods and simultaneously derives the salient features of actual urban renewal and other aid programs from optimizing government behavior based on collective public...

This paper offers a novel explanation for urban blight and endogenous divergence in the overall quality and wealth of neighborhoods and simultaneously derives the salient features of actual urban renewal and other aid programs from optimizing government behavior based on collective public...

This article considers the form of the optimal implicit contract when workers have private information about their opportunity wage obtained via costly on-the-job search. It is assumed that the workers' search intensity is unobservable by the firm. Hence, the optimal contract must reconcile the...