We show that under a two-party political system the party in office tends to be present-biased and time-inconsistent. This may lead to inefficient procrastination of socially beneficial projects. However, procrastination needs not be indefinite. There exist equilibria in which the project is...

This study examines the impacts of two prevalent types of patent promotion policies (reward and subsidy policies) by constructing a tractable general equilibrium model to examine the effectiveness of patent promotion policies in promoting research activities as well as the production of...

In this paper, we test the empirical implications of Grossman and Lai's (2004) game-theoretic model of international patent protection. The model yields clear predictions of the variation in degrees of patent protection across countries based on the market sizes and levels of innovative...

The author considers an environment with two firms, one domestically owned and one a foreign-owned multinational corporation (MNC), both producing in the host (domestic) country. It is found that there are three distinct dimensions that affect a country's strategic policy towards...

We derive a simple equation to calculate the global welfare impact of the simultaneous reduction of trade costs between multiple country-pairs. Interestingly, we find that we obtain the same equation for a broad class of trade models. Moreover, balanced trade is mostly not required for the...