This paper examines how trade liberalization affects the innovation incentives of firms, and what this implies for industry productivity and social welfare. For this purpose we develop a reciprocal dumping model of international trade with heterogeneous firms and endogenous R&D. We identify two...

This paper develops an efficiency theory of contingent trade policies. We model the competition for a domestic market between one domestic and one foreign firm as a pricing game under incomplete information about production costs. The cost distributions are asymmetric because the foreign firm...

This paper discusses environmental policies in response to foreign direct investment (FDI) in a symmetrie two-country setting, where firms' behavior affects government policy decisions. We show that two alternative equilibria with FDI are possible: (i) one with unilateral FDI, where one firm is...

This paper studies why multinational firms often share ownership of a foreign affiliate with a local partner even in the absence of government restrictions on ownership. We show that shared ownership may arise, if (i) the partner owns assets that are potentially important for the investment...

This paper discusses environmental policies which aim at a sustainable use of domestic resources which are mobile. It assumes that one country introduces such a policy but the other country does not. If a resource is mobile, strict domestic environmental policies may increase the resource...

In diesem Beitrag untersuchen wir die Wirkung einer veränderten Regelung für Sozialhilfe auf das Arbeitsangebot. Die unterstellte Neuregelung zeichnet sich dadurch aus, daß der implizite Steuersatz für das Arbeitseinkommen von Transferempfängern von derzeit 100 vH auf einen niedrigeren Wert...

The Earth Summit in Rio was expected to pave the way for more and effective cooperation with respect to biodiversity. This paper discusses the approaches which were adopted at the summit and the benefits of biodiversity which are closely related to innovations of the biotechnology industries....