We present a model of optimal government policy when policy choices may exacerbate socio-political instability (SPI). We show that optimal policy that takes into account SPI transforms a standard concave growth model into a model with both a poverty trap and endogenous growth. The resulting...

The ratios of spending on R&D, advertising and marketing to sales are employed accordingly as direct determinants of the degree of vertical and horizontal product differentiation. The model is verified with direct regressions and a system of simultaneous regressions combining large firm survey...