Evidence shows that firms build their market position by consistently investing in R&D over time and accumulating knowledge protected by secrecy, patents and other appropriability devices. To explore the macroeconomic implications of this fact, I construct an economy where oligopolistic firms...

This paper discusses the role of economic integration in a model of endogenous growth where the size of the firm and the interactions between growth and the (endogenous) structure of the market play a crucial role. I focus on the pure scale effects of integration and study explicitly their...

I investigate the aggregate effects of R&D tax credits in the US. Because it subsidizes R&D activity and because credit rates vary between states, this policy has both spatial and dynamic effects on the economy. To address this issue, I construct an endogenous growth model with spatial...

We consider an endogenous growth model with two sectors: an intermediate input (or "upstream") sector and a final product (or "downstream") sector. Innovation takes place in both sectors. Following Gilbert and Shapiro (1990), we define patent breadth as the ability of the innovator to reap...

'Top-of-the-line PCs and servers ... tend to be purchased by early adopters, technophiles who just can't wait' (Fortune, February 17, 1997). This paper constructs a model of quality improvements where multiple quality levels can sell due to differences in consumers' valuations of quality. Firms...

The influence of the intensity of competition in the product market on economic growth is analyzed by developing an endogenous growth model with horizontal innovation. Product market competition is measured by (1-Lerner index) and depends on both the share of factor inputs in total income and...

This paper addresses the concern of whether the determinants of patent infringement and declaratory judgment suits may affect both long-term economic performance and wage inequality. In doing so, we construct a quality-ladder R&D-based endogenous growth model, in which the institutional setting...

This paper discusses a model of vertical and horizontal product differentiation within the Dixit-Stiglitz framework of monopolistic competition. Firms compete not only in prices and horizontal attributes of their products, but also in the quality that can be controlled by R&D activities. Based...

This paper shows that the effects of employment protection critically depend on its enforcement. For this purpose, we capture evasion of employment protection via market exit in a setting of monopolistic competition. We find that the number of firms entering the market depends on firing costs...

In this paper we conduct an analysis of the effects of firing costs in models that consider simultaneously worker heterogeneity, imperfect information on their productivity and union power. We consider an OLG model where heterogeneous workers participate in the labour market both when young and...