The pollution haven effect reflects the idea that stricter environmental policies foster the relocation of polluting activities and imports of pollution-intensive products. This paper develops a new approach for testing this effect for imported intermediate materials. It adds to the existing...

Economies of scale and scope are typically modelled and estimated using cost functions that are common to all firms in an industry irrespective of whether they specialize in a single output or produce multiple outputs. We suggest an alternative flexible technology model that does not make this...