We develop a model of learning by doing in human capital formation in the presence of allocative inefficiencies. The inefficiencies are a result of lobbying by firms to establish, or prevent, barriers to the perfectly competitive allocation of factors of production (labor). It is shown that...

The empirical evidence on the causal relationship between international trade and economic growth is inconclusive. While some studies show that trade leads to growth, others have pointed to a reverse causation. In this paper we develop a model of international trade and productivity growth in...

This paper analyzes the role of expenditures on property right protection within a standard quality ladder model of endogenous growth. We develop a model where quality of each good improves as a result of innovation. Once the innovator develops a higher quality good there is an exogenously given...