In recent trade policy debates it is often argued that temporary protection stimulates innovation. This paper shows that the validity of the argument depends on the perceived credibility of protection policy. If it is suspected that temporary protection will be removed early should innovation...

We present a new framework to compare the dynamic effect of tariffs, and quotas in the presence of oligopoly. Suppose that the domestic and the foreign firm play a quantity-setting game over time in a perfectly stationary economy. A Markov-perfect equilibrium has the foreign firm exporting at...

An increased stock of physical capital, within a Brecher-type minimum-wage economy with skilled and unskilled labor, may reduce national income in the short run. However, if capital accumulation stimulated the formation of human capital, the long-run level of national income can exceed its...

This paper presents a model of brain drain which emphasizes scale economies in advanced education. The author demonstrates that brain drain raises the education and income levels of a host country. However, contrary to the presumption that brain drain hurts the unskilled individuals left in a...

Consumers boycott some goods because they do not approve the ways they are manufactured. I examine the efficacy of boycotts and the role of trade policy in influencing the foreign exporter's technology choice. Even when its technology choice is unobservable, boycott threats can prompt the...