We apply the co-evolutionary model of growth of Desierto (2008, 2005) to the process of integration to global/regional markets. Before markets are actually opened, firms start anticipating changes in the interest rate and play a first-stage (evolutionary) game whereby the quality of domestic...

This document considers an economy with many regions and two engines of growth: horizontal R&D, which increases the number of polluting product lines; and vertical R&D, which improves productivity in these lines. Pollution in any region decreases welfare in all regions. Any group of regions can...

We analyze the impact of economic integration on the activities of multinational enterprises in a general equilibrium model with asymmetric countries. Foreign direct investment (FDI) inflows are likely only to the extent that multinationals have not already shifted production to the integrating...

I examine a common market with the following institutions. Oligopolistic firms improve their productivity by R&D. Wages are determined by union-employer bargaining. Firms and workers lobby the authority that accepts new members and regulates unions' and firms' market power. The main findings are...