This paper highlights the importance of product differentiation and endogenous R&D in determining the optimal R&D policy, in a model where investment in cost reducing R&D is committed before firms compete in a differentiated-goods third-country export market. R&D is always taxed in oligopolies...

Abstract:This paper looks into the application of the theory of the persistence of profits" and how it can be used to model manufacturing industries in Colombia. By explaining where the theory of "persistence of profits" comes from, what it is, and what its determinants are brief descriptions of...