In this paper, we take a new look at the effects of the subsidy policy and the government’s R&D activities in an R&D-based growth model. The government not only subsidizes the R&D cost of the firms but also engages in R&D activities and, in addition, levies a specific tax on the firms...

Empirically studying dynamic competition in oligopoly markets requires dealing with large states spaces and tackling difficult computational problems, while handling heterogeneity and multiple equilibria. In this paper, we discuss some of the ways recent work in Industrial Organization has dealt...

If producers have more information than consumers about goods’ attributes, then they may use non-price (rather than price) adjustment mechanisms and, consequently, the market may reach a new equilibrium even if prices remain sticky. We study a situation where producers adjust the quantity (per...

It is claimed that introducing flexibility in regulation is a sufficient condition for curbing the level of informality in the developing world. This dissertation tries to test the validity of this claim using data for 46 countries over the time period 1980-2008 to explore the dynamics between...

This paper analyzes the impact of Research and Development (R&D) on the productivity of China's high technology industry. In order to capture important differences in the effect of R&D on output that arise from geographic and socioeconomic differences across three major regions in China, we use...

The issue of inequality or imbalance in sectional, sectoral or regional distribution of economic and social variables is connected to welfare implications of the functioning of an economy responsible for allocation of resources, and production, distribution and consumption of the material...

In this study we investigate the effects of Price Matching Guarantees (PMGs) commercial policies on U.S. online consumer electronics daily prices. By applying a Diff-in-Diff identification strategy we find evidence in favor of price reductions occurring after the PMG policy is repealed. We...

The paper presents a fully dynamic framework for simultaneous analysis of variety enhancing and quality improving innovations for the case of a single agent. There is a continuous stream of variety enhancing innovations and every new product from this stream has its own quality dimension which...

This paper discusses welfare costs of a decrease in productivity and argues that there are two important channels which cause a reduction in welfare: a decrease in output per firm (intensive margin) and a decrease in number of operating firms (extensive margin). Traditional Dixit-Stiglitz...

The newest findings in analysis of bilateral monopoly (BM) of lignite opencast mine & power plant have been discussed. The determinism of optimal solution not only in quantity of lignite (the size and shape of the ultimate pit) but also in its price has been depicted. It has been proposed to...