The United States introduced Federal Trade Adjustment Assistance (TAA) as part of the 1962 Trade Expansion Act to dampen the adverse impact of increased trade on workers. Applications to receive TAA require approval from the Department of Labor. Guided by the technical criteria used by the U.S....

Modern Schumpeterian growth theory focuses on the product line as the main locus of innovation and exploits endogenous product proliferation to sterilize the scale effect. The empirical core of this theory consists of two claims: (i) growth depends on average employment (i.e., employment per...

We study the entry and exit dynamics of nonprofit public charities using 1989-2003 tax return data. The observed patterns can be understood using a dynamic industry model based on Jovanovic (1982) that incorporates profit-deviation and a non-redistribution constraint. Both features generate a...

We present a dynamic duopoly model of R&D with spillovers where industry concentration is endogenous. In our model, firms compete repeatedly in both the product market via Cournot competition and in imperfectly appropriable process R&D. The analysis highlights the effects of spillovers through...

We study a dynamic duopoly model of R\&D to analyze the impact of imperfect appropriability on market structure and welfare. We pursue this analysis by extending the Markov-Perfect dynamic industry model proposed by Ericson and Pakes (EP) (1995), through the introduction of a non-proprietary...

Gibrat's Law of proportionate effect, as applied to firms, states that the growth rate of a firm is independent of its size. Empirical work on firm dynamics finds crucial deviations from Gibrat's Law such as smaller firms growing faster than larger firms (Evans, 1987, and Hall, 1987), a negative...