In this paper, I examine the impact of Civil War pensions on the labor force participation of the veterans and non-veterans. My analysis shows a substantial difference in the participation rate among the pensioners, which closely correspond to the variation in pension income. I also found a significant impact of health and occupation, and supports previous findings about the declining elasticity of retirement with respect to pensions. Furthermore, a comparison of the participation rate between veterans and non-veterans reveals a strong regional difference in retirement behavior. The model of city is getting attention from many people recently.
City is an important, but often neglected part of economic models.
I develop this simple model of city growth when I was in college based on my experience living in one of the most notoriously big and crowded city in the world. I model a city that has many productivity-generating local public goods, and massive immigration. The interaction of public policy and immigration determined the level of local public good, which affect prices and wages between cities. Therefore, when a city moves out of its steady state, self-reinforcing migration generates an increasing and strictly concave growth path. I fit the model with data from 10 cities in the United States from 1850 to 1990.