We propose to strengthen Popper's notion of falsifiability by adding the requirement that when an observation is inconsistent with a theory, there must be a "short proof" of this inconsistency. We model the concept of a short proof using tools from computational complexity, and provide some...

This paper addresses an optimal tariff design to protect an infant-industry in the presence of learning effects. Firms decide how much to produce, taking into account learning effects induced by their current production, while the government decides on the level of tariff protection. In order to...