This paper analyzes a dynamic, Ricardian model of international trade in which relative differences in technology are endogenously determined by investments in innovation by competitive firms. It considers the impact of these investments on trade patterns and the effect of trade patterns on...

While reducing industrial greenhouse gas (GHG) emissions is undoubtedly necessary to avoid an ecological disaster, political support for environmental regulation depends largely on its effectiveness and expected side-effects. A potential fallout often associated with environmental policies is a...