We formalize an explanation for technology revolutions and growth cycles in a model where consumers and firms benefit from periodic changes in technology which result in the development and marketing of new generations of products. We characterize the equilibrium and analyze the effects of...

In this article we demonstrate how a long duration of patents affects investment in new product development. We construct an overlapping-generations model of saving, investment, and product innovation and show that a long duration of patents results in a high aggregate value of monopoly firms...

The authors provide a rigorous general equilibrium analysis of the welfare effects of international trade in the presence of differentiated home nontraded products as well as tradable products. They extend the standard monopolisitic competition framework to incorporate differentiated nontraded...