Human Capital Externalities with Monopsonistic Competition This paper provides a novel microeconomic foundation for pecuniary human capital externalities in a labor market model of monopsonistic competition. Multiple equilibria arise because of a strategic complementarity in investment decisions. JEL Classification: D43, J24

This paper implements a novel approach to formalizing spatial externalities by employing spatial econometric methods that combine spatial dependence and spatial heterogeneity in the form of spatial regimes. The results confirm earlier findings that academic externalities are not uniform across sectors but also indicate important differences across sectors in terms of agglomeration effects.

This paper analyzes the impact of fiscal equalization on asymmetric tax competition when positive agglomeration externalities are present. It shows that equalization of standardized tax revenue improves the spatial allocation of capital provided that agglomeration externalities are sufficiently strong. JEL Classification: R12, H71, H73.

We present a two sector dynamic general equilibrium model with both sector-specific and aggregate externalities. We find that including the aggregate effects allows for a trade-off between the sizes of the two types of externalities needed for indeterminacy.  2000 Elsevier Science S.A. All rights reserved.