We model international rivalry between a domestic firm that is going through a leaming-by-doing phase, and a mature foreign rival. We show that the optimal production subsidy for the domestic firm depends on the degree of strategic sophistication of the foreign firm.Optimal production subsidy...

The paper models international rivalry between a domestic firm that is going through a learning-by-doing phase, and a mature foreign rival. It is shown that the optimal production subsidy for the domestic firm depends on the degree of strategic sophistication of the foreign firm. Optimal...

The authors examine the role of strategic interactions among a small number of financial intermediaries who know that the current financial regime is subject to change. The current financial regime offers protection to the intermediaries against bad outcomes. Each financial intermediary's...

Several authors have shown that the opening of trade may be harmful if natural resources are exploited under the open-access regime. These authors assume that property rights regimes are exogenously given, and are the same before and after the opening of trade. In this paper, we model the...

We investigate an intertemporal model with an exhaustible resource inflowwhich exhibits a single peak in consumption on the path of development. Thepeak follows the date at which net investment is zero. The ``top'' ofconsumption is higher and flatter and peaks later when the discount rate...