Goel, Rajeev K.; Haruna, Shoji - In: Journal of Institutional and Theoretical Economics (JITE) 167 (2011) 2, pp. 314-326
This article incorporates research spillovers and examines behavior of firms in a two-stage, international trade game with process innovation. Governments choose optimal research subsidies in stage 1, and firms take account of the subsidies in choosing research and production in stage 2. Results...