We analyze empirically whether trade and financial linkages between two countries increase the synchronization of their business cycles directly or indirectly. In a system of equations, we use a newly processed database on the bilateral linkages of a small open economy, namely Spain. We prefer...

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