Exporters of exhaustible resources have historically exhibited higher income volatility than other economies, suggesting a heightened role for precautionary savings. This paper uses a parameterized small open economy model to quantify the role of precautionary savings in economies with...

We analyze how a manufacturer with a brand-name drug close to patent expiration decides to launch a product-line extension (an upgrade through innovation) before it faces generic competition. There are two types of physicians: loyal physicians always prescribe first the product-line extension...