In the spirit of the deregulation movement, Japan is also faced with an gAsia Open Sky h agreement which favours aviation liberalization in international services. This means an end to Japan's aviation policy of isolation. In association with this policy change, also environmental concerns grew...

We study innovation and the resulting Schumpeterian economic growth that this innovation gives rise to in a model with N heterogeneous regions. For each region i where i=1,...,N, our analysis leads to five findings. First, we define the balanced growth path (BGP) allocations and the equilibrium...