Bai, Yan; Jin, Keyu; Lu, Dan; Wang, Hanxi - National Bureau of Economic Research - 2024
We study optimal dynamic trade policies in an Eaton-Kortum model with technology diffusion through trade. The process … technology by determining the distribution from which producers draw their insights. Our theory shows that optimal policies … capture a dynamic motive for a country to alter global technology. These policies take into account selection effects, country …