In a world dominated by large economies with flexible exchange rates and predictable market forces, quantities of currencies bought and sold would warrant very little attention. Models illustrating and explaining foreign exchange markets would focus almost exclusively on prices, i.e. exchange...

Many developing economies of the world today have been building up massive foreign exchange reserves of industrialized economies. A clear example of this is China. In February of 2005, China surpassed Japan as the world's largest holder of foreign exchange reserves. After the Asian Contagion...

The paper consists of an investigation of Donald McCloskey’s proposition that economic journals contain both metaphors and allegory. The first section consists of a definition of allegory where it is shown that the defining trait of allegory is that it can be read on two levels, the...

This paper investigates government subsidy games for private sector research and development (R&D) in a two-country two-firm intra-industry trade model. Two funding structures are compared: “cost sharing” vs. “reward for performance.” Both the theoretical evidence and the results of a...

The Advanced Technology Program (ATP) of the National Institute for Standards and Technology (NIST) subsidizes the R&D expenditure of large single firms at a maximum rate of 40%. The theoretical analysis herein of a monopoly innovator suggests that this subsidy rate is about socially optimal...

Consider a dynamic duopoly model where R&D spending is used to increase the reliability of a firm's product under two competitive scenarios: the home firm competes with a "complacent" foreign firm that does no R&D whatsoever or with a "lockstep" foreign firm that improves its product at exactly...