each government may grant R&D subsidies to the domestic firm. We show that it is optimal for a government to provide higher … R&D subsidies the lower the level of trade costs, even if the firms are independent monopolies. If firms produce … necessarily welfare-maximizing. The optimal coordinated policies may imply an asymmetric outcome with R&D subsidies to only one of …

This Paper studies the criteria with which the presence or absence of ‘subsidy’ in sales contingent Launch Aid R … incompleteness where the interval between bid and ask prices may not be finessed away. An economic definition of subsidy must … complete and incomplete market settings. With this in hand we then revisit some commonly posed questions concerning the subsidy …

only if the government can commit to those policies for as long as they affect firms' decisions. Export subsidies or other …

Our concern is about a firm-specific industrial policy. When R&D subsidies or taxes are differentiated among firms, the … affected differently by the two sources of firm heterogeneity. Moreover, a change in a firm's R&D productivity has an ambiguous …

productivity. We do so by developing a quantitative model with heterogeneous firms and international trade where firms can invest … cover the fixed costs of sourcing foreign inputs, which in turn also has a benign impact on measured productivity. Using …&D investment play a key role in explaining firm-level productivity growth. Moreover, the estimated returns to R&D are significantly …

We develop a simple estimator for production functions in the presence of endogenous productivity change that allows us … to retrieve productivity and its relationship with R\&D at the firm level. By endogenizing the productivity process we … as a generalization of the knowledge capital model (Griliches 1979) that has remained a cornerstone of the productivity …

’ hypothesis that foreign research labs located on US soil tap into US R&D spillovers and improve home country productivity. Using … firms’ Total Factor Productivity would have been at least 5% lower in 2000 (about $14bn) in the absence of the US R&D growth …

knowledge' from its cumulative R&D activities, a developing country can boost its productivity by importing a larger variety of …