Scale effects in per capita production are an outcome of many theoretical economic models like second generation growth models, models of the new trade theory or the new economic geography. The prediction is that larger economies should have a higher per capita production than smaller economies. However, in an open economy context the scale of the economy is less important because countries can...

by shouldering the burden of a big chunk of global production, and giving shelter to half of the world’s population, currently cities play an important role in national economies. benefits of agglomeration in cities have played a major role in the process of economic development of different countries, however, the expansion of urbanization has produced some problems including environmental and...

1. The second question suggested by the analytical framework is whether market failures will result from decreases in the prices of commodity outputs, in a context of agricultural policy reform. To answer this question, we need to know: (1) how price decreases will affect the level of production of both commodity and non-commodity outputs, and (2) what is the value of the resulting reduction in...

In this paper, I carry out a welfare analysis of the minimum wage in framework Diamond–Mortensen–Pissarides model with stochastic job matching. explore role labor market trading externalities and present necessary sufficient condition for hike to be efficiency enhancing. context, characterize spillover effects demonstrate that there is direct link between wage. This theoretical finding suggests...

This article investigates the impact of terrorist attacks on global capital markets. We find economic consequences of terrorist attacks spillover through trading partners. When a bigger economy (measured by GDP) is targeted, the spillover is specifically prominent for economically smaller trading partners. Such partners see a -2.5% reduction in national stock indices. Odds for smaller trading p...

Spatial externalities among businesses, though notoriously difficult to measure, are a central concern in urban and regional economics. Traditionally they–along with closely related concepts such as agglomeration economies–have been studied empirically with hedonic models, production and cost functions, and simplified growth models. More recently, researchers have begun using direct measures of...