Though government intervention is prevalent in the market for research and development (R&D), most literature has focused on the use of subsidies, patents or joint research ventures to obtain the efficient R&D investment. By using a two-stage duopoly model in which firms first choose the level...

The production assignment problem assumes a central role in the multi-country, multi-good Ricardian trade model. However, resolution of the problem is not sufficient to illustrate the shape of the world production frontier, even if the examination is limited to efficient production of all goods....

I introduce an alternative parameter-based definition of component- and headquarter-intensive sectors into the seminal model of global sourcing by Antràs and Helpman (2004, JPE). This approach overcomes problems of the original sector definition like counter intuitive classifications or...

This paper discusses the results of the application of Jones' Inequality to the n-country, m-good Ricardo–Graham model. In the Jones' Inequality model, the number of countries is the same as the number of goods produced. On one hand, if a country is divided into regions for the purposes of...

Using a two-country model of monopolistic competition with cross-country technical heterogeneity, this note explores the determinants of comparative advantage. It is shown that trade patterns are determined by a technology index, and that autarky relative prices do not serve as reliable...

In this note, we examine how trade liberalization affects the profits of firms in the presence of network effects. We will show that, contrary to conclusions in the previous literature, trade liberalization between identical countries increases firms' profits despite intesified competition.

This note explores the determinants of trade patterns by extending a Chamberlinian-Ricardian monopolistic competition trade model to have a larger number of industries as did Dornbush, Fischer and Samuelson (1977). It will be shown that the degree of cross-country technical differences among...

This paper examines the impacts of country-specific network costs that are provided by a capital-intensive communications sector in a two-country two-factor model, where there are two trading sectors, agriculture and manufacturing. It is shown that when firms in the manufacturing sector incur a...

Using a two-country model of monopolistic competition with cross-country technical heterogeneity, this note explores the determinants of comparative advantage. It is shown that trade patterns are determined by a technology index, and that autarky relative prices do not serve as reliable...

In this note, we examine how trade liberalization affects the profits of firms in the presence of network effects. We will show that, contrary to conclusions in the previous literature, trade liberalization between identical countries increases firms' profits despite intesified competition.