We address concerns that globalisation gives national governments incentives to set weak environmental policies and that these incentives are particularly strong in industries where plants are footloose. Using a simple model of imperfect competition, we compare the environmental policies that...

In a model of strategic R&D competition between two firms that negotiate with independent unions we show that: (i) incomplete labour market contracts may Pareto-dominate complete labour market contracts (ii) even when complete contracts Pareto-dominate incomplete contracts, economies can get...

It is sometimes argued that fears about the employment consequences of introducing new technology may lead unions to wish to delay innovations, and this may reduce incentives for a firm to carry out R&D. The authors explore these issues in a model of two countries that compete over both market...