, and trades these at exogenously given world prices. We study the welfare implications of R&D subsidies and commercial … achieves the first-best rate of growth, but not the first-best level of welfare. Small tariffs and export subsidies also affect … both growth and welfare. Growth may increase or decrease, depending upon which sector is promoted by the trade policy. But …

welfare implications. We also allow for lobbying by workers with sector- specific skills and show how the conflicting …

studying the welfare consequences of trade, transport costs, and trade policy for different income groups in an economy …