In a homogeneous-good duopoly game with a home and a foreign firm, which compete on prices, it has been shown that the optimal way to assist the domestic industry is by a production subsidy. The argument here is that the subsidy is used to keep potential competitive pressure on the foreign firm....

The theory of optimal debt relief hinges critically on the assumption that the output of a defaulting debtor country can be partially confiscated by the creditors. This assumption is at odds with the crucial feature of international credit relationships. The present paper focuses on an...

The paper empirically investigates international productivity convergence in the manufacturing sector, which was found not converging in earlier studies. The authors analyze subsectors of aggregate manufacturing in order to compare similar technologies and to avoid the mixing of converging and...