This paper builds a model of R&D-based growth in which the discovery of higher-quality products is governedby sequential stochastic innovation contests. Incumbent firms producing state-of-the-art-quality productsexpend resources in activities to protect their rents; challengers raise claims to...

We explore theoretically and empirically the relationship between intraindustry trade and the skill premium. Our model features a Chamberlinian-type mechanism of income distribution based on quasi-homothetic consumer preferences, non-homothetic production, and factor-biased scale economies at...

When a resource like oil is domestically contested, trade patters and welfare can be very different than when property rights are costlessly enforced. Whereas (small-country) importers of the contested resource gain unambiguously relative to autarky, exporters of the contested resource lose...