This paper develops a measure of the change in welfare of a household or an economy due to exogenous shocks or policy changes. The measure can be applied in a wide range of economies of scale, imperfectly competitive markets, unemployment, and domestic distortionary taxes. The welfare change...

Patents were chosen in an era when modern public finance tools were unavailable. The same innovation outcomes can be achieved with higher welfare, if patent elements are replaced by modern features. This paper constructs two theoretical models of product innovation and simulates the welfare...

This paper investigates efficient policy interventions in market economies, establishing a general policy intervention result and explaining why more general results are not possible. The paper shows the applicability of the methodology to a number of new results in the theory of international...