A Model of International Cities: Implications for Real Exchange Rates
---- Acknowledgements ----
We especially thank Mary Amiti, Eric Bond, Paolo Pesenti and Robert Vigfusson for valuable comments and criticisms. We grateful to seminar participants at the California State University -- Long Beach, Federal Reserve Banks of Dallas and New York, Utah State University, Temple University, University of Tennessee at Knoxville and Vanderbilt University; conference participants at the 2008 Midwest International Economics Meeting at The Ohio State University, the 2008 Midwest Annual Meeting participants in Chicago, IL, the Wegman's Conference at the University of Rochester, and the Murray S. Johnson Memorial Conference, The University of Texas at Austin. The authors gratefully acknowledge the financial support of the National Science Foundation (SES-0136979, SES-0524868). The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.