Developing countries with low tax capacity may rely on predation to finance government functions. Government predation, in turn, is often accused of imposing a choking effect on state-owned enterprises (SOEs), contributing to the latter's poor performance. We formalize this choking effect as a...

There are two opposite views regarding whether stronger protection of intellectual property rights (IPRs) will benefit or hurt the South. We provide a unification using a model of directed innovations with identical but non-homothetic preferences. For the South, a major benefit of protecting...