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study the effect of a net neutrality regulation on capacity investments in the market for Internet access, and on innovation … capacity and content innovation are both higher than under net neutrality. Total welfare increases, though the discriminatory …
Persistent link: https://www.econbiz.de/10011083479
investment of constrained firms by reducing free cash-flow and thereby discourage innovation. (iii) A revenue neutral increase in …Credit constraints are more frequent among growth companies with large investment opportunities. For the same reason … endogenous share opts for innovation and faces credit constraints in the subsequent expansion phase. We emphasize four results …
Persistent link: https://www.econbiz.de/10008468605
Contrary to what has been standard in the international trade literature, we argue that firms' access to international markets should not be just reduced to exogenous factors such as trade costs. Instead, we defend that market access can also be endogenous, since firms can affect international...
Persistent link: https://www.econbiz.de/10005656175
In a spatial economy where oligopolist firms compete in R&D, it is found that geography affects the innovative behaviour of firms. Notably, international differences in market size conduce to endogenous asymmetries between firms given that firms located in the country with more demand have...
Persistent link: https://www.econbiz.de/10005656193
Two central results in the strategic trade literature are that governments shall support winners and that there is a policy prisoner dilemma in international subsidy wars (i.e. countries have incentives to support local firms but they would be better off by cooperating to not intervene). We show...
Persistent link: https://www.econbiz.de/10005661762
In an oligopoly trade model where firms engage in R&D, international differences in market size allow for the emergence of endogenous asymmetries between firms. Concretely, firms located in countries with more demand become more competitive because they have strong incentives to perform R&D...
Persistent link: https://www.econbiz.de/10005788976
relative to the present is reduced. Hence, due to a rise in terror activity, investment goes down, and in the long run income …
Persistent link: https://www.econbiz.de/10005504271
and investment, so it may take some time before an unemployed worker finds a job. Wages are determined by bargaining. A … subsidize entrepreneurial investment (there is a wage bargaining distortion and a search externality), simulations show that the …
Persistent link: https://www.econbiz.de/10005504418
fertility, and lower investment in physical and human capital. Furthermore, the feedback effect from economic prosperity to …
Persistent link: https://www.econbiz.de/10005504520
and investment. When the share of output that accrues to the owners of natural resources rises, the demand for capital … allocation of capital may, however, enhance the quantity as well as the quality of new investment and sustain growth. Empirical … thereby inhibiting economic growth. The results also suggest that abundant natural resources may hurt saving and investment …
Persistent link: https://www.econbiz.de/10005504629