The dormant Commerce Clause has long been a thorn in the side of state policymakers. The latest battleground for the clash between federal courts and state legislatures is energy policy. In the absence of a decisive federal policy response to climate change, nearly thirty states have created a...

This paper considers a developing nation that faces a foreign exchange shortage and hence its demand for foreign goods is limited both by its income and its foreign exchange balance. Availability of international credit relaxes the second constraint. We develop a simple model of strategic...

There has recently been a resurgence of interest in how institutions affect economic performance. A review of this literature reveals that the concept of an 'institution' means different things to different scholars, both within economics and across the social sciences. This paper discusses what...

We develop a theoretical model of the dynamics of an industry over the business cycle. We characterize the intertemporal evolution of the distribution of firms, where firms are distinguished by their capital in place and the productivity of their technology. We contrast investment and exit...

Does competitive pressure foster innovation? Technical progress consists of numerous small improvements made upon the existing technology continuous improvement and innovative activities aiming at entirely new technology (discrete innovation). Continuous improvement is often of limited relevance...

We propose a model-based decomposition method for the aggregate labour share in terms of the first moments of the joint distribution of TFP, market power, wages and prices, and apply it to UK manufacturing using firm-level data for 1998-2014. Contrary to a narrative focussing on increasing...

In contrast to the usual approach taken in the literature, in which an Industry Life Cycle (ILC) is reproduced by aggregate functions, the model of this paper generates a self-organizing ILC. A general evolutionary agent-based simulation model is developed that can be adapted for specific...

Previous work on exit in declining industries has neglected mergers. We examine a simple model that predicts which declining industries experience horizontal mergers. Mergers are more likely if 1) market concentration is high; 2) the inverse demand curve is steep at high levels of output and...

This paper examines the effect of the international competitiveness of home producers on their pricing. Evidence based on the 1970-75 period suggests the claim that in the Canadian manufacturing sector domestic prices are set in accordance with a mixture of two pricing hypotheses: the...

This paper introduces a novel analysis of the classic quot;persistence of leadershipquot; question, and applies it to a newly constructed dataset for Japanese manufacturing. The analysis rests on an appeal to an empirical quot;scaling relationshipquot; between current market share and the...