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...

...In this paper, we tackle all these difficulties by conducting a full geomatrical analysis of the comparative statics of general models...

This paper examines the impact of monetary policy on UK firms’ access to bank and market finance whenallowance is made for differences in firm-specific characteristics. A theoretical model determines the cut-off valuesfor project profitability that would allow firms to access bank or market...

We develop a two-country labour-market model characterised by union wage-bargaining, in which the unemployed incur individual-specific costs of seeking work abroad. We explore the effects on equilibrium unemployment and population in each country of changes in union bargaining strength,...

We set up a two-stage game with sequential moves by one altruistic agent andn selfish agents. The rotten kid theorem states that the altruist can only reach her firstbest when the selfish agents move before the altruist. The Samaritan’s dilemma, on theother hand, states that the altruist can...

We study environmental policy for a polluting firmthat can invest in extracapacity. The optimal levels of allowed output as well as the tax rate are increasingin investment. With divisible investment, commitment always leads to the first best,under direct regulation and taxation. Time-consistent...

This paper investigates the role of trade credit in the transmissionof monetary policy. Most models of the transmission mechanism allowthe firm to access only financial markets or bank lending according tosome net worth criterion. In our model we introduce trade creditas an additional source of...

We develop and analyse a simple general equilibrium model withcapital market imperfections We find that the impact of monetarypolicy on real economic activity depends on the initial distributionof wealth in the economy. Changes in the opportunity cost of fundsaffect not only the choice of...

This paper analyses a model of overlapping generations in which agents who do notparticipate in the labor market are unable to borrow. Thus an increase in a fullyfunded pension raises aggregate savings even with a fixed participation rate, sinceprivate savings are not crowded out one-for-one....

In currency crises, unlike in orderly devaluations, the financial markets dominateevents. It is shown that currency collapses (crises followed by depreciations) have hada much greater adverse impact in emerging markets (defined as relatively highincomedeveloping countries exposed to...