There exist two approaches in the literature concerning the multinational firm's mode choice for foreign production between an owned subsidiary and a licensing contract. One approach considers environments where the firm transfers primarily knowledge-based assets and assumes that knowledge is...

This study uses panel data on Canadian establishments to explore the relationship between the organization of work - in particular decentralization, information-sharing, and incentive pay schemes - and innovation. Like other studies, ours finds a clear positive link between these factors....

Competition for firms by region has a long-standing history, and the academic literature has debated whether such competition is efficient. We develop a model that explores technology development by firms facing regional competition for their investment and examine the endogenous determination...

This paper explains why a software manufacturer may permit limited piracy of its software. Piracy can be viewed as a form of price discrimination in which the manufacturer sells some of the software at a price of zero. In the presence of significant network externalities for the software, it may...

Case studies suggest exporters learn from clients. Econometric evidence is mixed. We use firm-level panel data on exporting and productivity with direct information on learning sources, including clients. We find: (a) firms who exported in the past are likely to learn more from clients (relative...

Confusion surrounding the appropriateness of long-run considerations in effluent regulation has arisen in the literature and recently carried over into textbooks. We use a factor input model under oligopsony to show that, when firms can influence the level of marginal damages, a linear pollution...

The paper investigates the productivity effects of the Canada-U.S. Free Trade Agreement on Canadian manufacturing. It finds that Canadian tariff cuts increased exit rates among moderately productive non-exporting plants. This led to the reallocation of market share towards highly productive...

The relative efficiency of tariffs versus quotas is analyzed in a Cournot oligopoly with strategic investment, introducing quota licence fees to neutralize the international distributional effect. When such licence fees remove quota rents from foreign firms, then, for the case of constrained...

This paper considers the implications of changing trade barriers for the survival of Canadian manufacturing firms. The findings suggest that Canadian tariff reductions decreased the probability of survival for Canadian firms while declines in American tariffs increased that probability....

We examine restructuring, divestiture, and deregulation of a vertically integrated public utility, (e.g., electricity), from a public finance perspective. How an optimal restructuring plan for the utility depends on the cost of public funds and on the X-efficiency gains from privatization, how...