This study examines optimal public policy in a product cycle model where R&D firms innovate and imitate and households face non-diversifiable risk. The government controls product cycles by two policy instruments: patent length, i.e. the expected time an innovation is imitated, and patent width,...

We develop two models of economic growth with exhaustible natural resources, exogenous technical progress and consumers heterogeneous in time preferences. The first model assumes private ownership of natural resources. In the second model, natural resources are public property and the resource...

The cohesion across European member states and regions has been constantly promoted by EU science policy. Research networks and collaborations have for long constituted one of the most important vehicles of EU research integration. The presence of EU research funding can influence the...

This paper examines two possible sources of interaction between private capital and productive public expenditure within an endogenous growth model. On the one hand, public investment and private capital are complementary with each other in the production of goods. On the other, they can be...

By using the recent Gertler and Kiyotaki.s (2010) setup, this paper explores the interaction between real distortions stemming from the labor market institutions and financial shocks. We find that neither labor market imperfections nor fiscal institutions determining tax wedges have an impact on...

The paper develops a model of proportionate growth to describe the dynamics of international trade flows. We show that a large number of the empirical regularities characterizing international trade — such as the fraction of zero trade flows across pairs of countries, the positive relationship...

According to the New Economic Geography and Growth (NEGG) literature (Baldwin et al. (2004)), spatial concentration of industrial activities increases growth at the regional and aggregate level without generating regional growth differentials. This view is not supported by the data. We extend...

The underlying model analyzes the first time foreign market entry decision of a representative investor who can choose between export and FDI. The model combines the proximity-concentration trade-off framework with the real option methodology and sheds light on the effects of productivity...

Within the causal structure of economic development, we can distinguish between short-term and long-term causal links. In particular, this study examines long-term short-term causal relations in economic development. We construct a balanced panel for 72 countries over the period from 1980 to...

We use panel data on Mexican manufacturing plants to study the dynamics of plant-level exporting activity at both the extensive and the intensive margins and the connection between exporting dynamics and plant-level total factor productivity growth. We find that exporting activity has a ladder...