In a vertically separated industry, where the input suppliers have significantmarket power, not only entry but also the markets (upstream or downstream) withentry possibilities might be a concern to the policy makers. While ‘entry in thedownstream market only’ always increases welfare,...

A switch from a Bismarckian (BIS) earnings-related to a Beveridgean (BEV) flat ratepay-as-you-go (PAYG) pension scheme will raise the variance of personal replacementratios and, hence, the variance of individual interest-saving elasticities. A monopolisticfinancial sector can then make greater...

It has been found in the literature that the overnight Eurodollar rate and the effective Fedfunds rate exhibit similar calendar-day effects caused by the Federal reserve regulationsand accounting conventions and characteristics of the Fed funds market. However, it wasnot documented whether the...

The Hodrick-Prescott …lter is often applied to economic series as part of thestudy of business cycles. Its properties have most frequently been exploredthrough the development of essentially asymptotic results which are practicallyrelevant only some distance from series endpoints. Our concern...

In this paper we consider the situation where the deterministiccomponents of the processes generating individual series are linear trendsand the individual series are independent I(0) or I(1) processes. We showthat when those time series are used in ordinary least squares regression,the...

This paper compares Bertrand and Cournot equilibria in a horizontallydifferentiated duopoly market with non-tournament R&D competition. We consider thatsuccess in R&D is uncertain. We show that whether firms invest more under Cournotcompetition or Bertrand competition is ambiguous and depends on...

This paper shows that the possibility of licensing can significantly alter theeffects of entry on social welfare. We find that while licensing with output royaltyalways raises welfare due to entry, licensing with up-front fixed-fee reduces thepossibility of lower welfare compared to a situation...

This paper shows the possibility of higher welfare under Cournot competitionin an asymmetric cost duopoly when the firms have the option for technology licensing.We find that if there is licensing with up-front fixed-fee, welfare is higher under Cournotcompetition compared to Bertrand...

Once a new technology has been invented, there is a credible threat of imitationwhen patents are long and imitation cost is low. When imitation is credible, the innovator hasan incentive to postpone technology adoption for relatively high cost of imitation. Thepossibility of licensing eliminates...

The literature on technology licensing has ignored the importance ofmarket power of the input supplier. In this paper we examine the incentive forlicensing in the downstream industry when the firms in the upstream industry havemarket power. We show that licensing in the downstream industry is...