We employ an open economy general equilibrium model to investigate the effects of government energy policy, with emphasis on corn-based ethanol, on the U.S. economy. The model specification incorporates world and domestic markets, assumes pollution costs from fuel consumption, and allows...

We study firm reputation as a mechanism to assure product quality in perfectly competitive marketsin a context in which both certification and trademarks are available. Shapiro’s (1983) model ofreputation is extended to reflect both collective and firm-specific reputations, and this framework...

This paper studies how the strength of intellectual property rights (IPRs) affects investments in biological innovations when the value of an innovation is stochastically reduced to zero because of the evolution of pest resistance. We frame the problem as a research and development (R&D)...

We develop a dynamic duopoly model of R&D competition to improve the quality of a finalgood. The innovation process is sequential and cumulative, and takes place alongside productionin an infinite-horizon setting. In this context we study the R&D incentive impacts resultingfrom a “research...

In this paper we relate the economics of labeling genetically modified (GM) products to thetheory of grading and minimum quality standards. The model represents three stages in thesupply chain (farm production, marketing handlers, and final users) and allows explicitly for theaccidental...

We employ an open economy general equilibrium model to investigate the effects of governmentenergy policy, with an emphasis on corn-based ethanol, on the U.S. economy. The modelspecification incorporates world and domestic markets, assumes pollution costs from fuelconsumption, and allows...

Research and Development (R&D) and innovation are crucial features of the seed industry. To supportlarge R&D investments by the private sector, strong intellectual property rights, such as patents, arenecessary. The exclusivity granted by patents naturally creates market power positions and...

We develop a reputation model to study the concurrent use of trademarks and certification for foodproducts with a regional identity, known as geographical indications (GIs). The model extendsShapiro’s (1983) approach to modeling reputation to a situation in which two technologies for...

Significant government support for biofuels has led to rapid growth in U.S. ethanol production andresearch to develop more advanced biofuels. In this paper we construct a general equilibrium, openeconomy model that captures the rationale typically invoked to justify government intervention in...