Ottaviano, Gianmarco I.P.; Naghavi, Alireza - Fondazione ENI Enrico Mattei (FEEM) - 2009
incomplete contracts. In so doing, we model offshoring as the geographical fragmentation of a firm’s production chain between a … incomplete contracts also increases consumption depends on firm heterogeneity. On the normative side, we show that, whereas with … complete contract efficiency is restored through a subsidy to R&D only, with incomplete contracts a production subsidy to …