determines how changes in trade frictions affect allocative efficiency in an oligopoly model of international trade, decomposing …

Empirical studies have found that enhanced foreign competition can encourage or discourage innovation. To address this …-product firms live forever, and the large firms invest in innovation in order to enlarge their product spans. All firms export. I … show that an increase in the competitiveness of foreign firms can increase or reduce innovation efforts of a large multi …

inconsistent with the implications of cost-minimization; (2) for-profit firms operate at a positive level of marginal cost, but non-profit … supply of quality is inelastic, with point estimates of the supply elasticity of .04-.05 for both for-profit and non-profit …

costs and quantities. Unfortunately, neither in ordinary language nor in the jargon of moral philosophy can such ultimate … desiderata as liberty and justice be related to costs or quantities. Hence in the first section we sketch a model of social …

and concentration and recovers shocks to entry costs. We validate our approach by showing that the model-implied entry … shocks correlate with independently constructed measures of entry regulation and M&A activities. We conclude that entry costs …

The termination of a representative financial firm due to excessive leverage may lead to substantial bankruptcy costs … liquidation and the associated deadweight costs. It is shown that the optimal taxation policy to finance such transfers exhibits …

We propose a theory of task trade between countries that have similar relative factor endowments but may differ in size … be performed at home or abroad, but offshoring entails costs that vary by task. In equilibrium, the tasks with the … highest offshoring costs may not be traded. Among the remainder, those with the relatively higher offshoring costs are …

particularly attractive locations to offshore? In this paper we address these questions with a theory of international production … hierarchies in which organizations arise endogenously to make efficient use of agents' knowledge. Our theory highlights the role …

. To fill this gap, we build a general equilibrium model with heterogeneous agents and firing costs in the tradition of …