This note explores the relationship between the price elasticity of demand and the R&D intensity of the product. We introduce the concept of R&D intensity into a standard Dixit-Stiglitz/Krugman-type setting. R&D activity is treated as a fixed cost of production. Within this framework, sectors...

The increasing integration of international financial markets means that credit defaults in one country have to be covered by creditors in other countries. If the principle of creditor liability were applied systematically, the financial losses incurred by the financial institution that provided...

The discussion on an increase of development aid is overshadowed by uneasiness about job opportunities at home. Against the demands for a sizeable increase of development aid funds it is often argued that such aid draws purchasing power away from the internal market if it is not tied to...

The opposition to a liberal stance on imports of manufactures from developing countries is growing as certain specific groups of products made in these countries prove increasingly competitive and the industrialized countries suffer from persistent high unemployment. Model computations for the...

Protectionism in international trade, in particular with regard to imports from developing countries, has increased rapidly since the beginning of the 1970s. Dieter Schumacher analyses the reasons for this development and makes some proposals for a liberalization of trade which take the...

The controversy about the pros and cons of state interference in the economy has become much more heated in recent years. In the industrialised countries this can be gauged from the debate about deregulation and privatisation. The proposition that the more market-oriented the economy the more...

The completion of the European internal market is generally expected to have beneficial welfare and growth effects. To what extent will they lead to a change in employment? How will the employment effects be distributed among countries, industries and social groups?