In an R&D-driven growth model with asymmetric fundamentals the steady state equilibrium R&D investments are industry-specific and they are such that R&D returns are equalized across industries. Return equalization, however, makes investors indifferent as to where to target research and, hence,...

We extend the class of quality-ladder growth models (Grossman- Helpman (1991), Segerstrom (1998) and others), to encompass an economy with asymmetric fundamentals. In contrast to the standard framework, in our model industries may di¤er in terms of their innovative potential (quality jumps and...

This paper revisits the puzzle of immigration policy: standard economic theory predicts that free immigration improves natives' welfare, but (with few historical exceptions) an open door policy is never implemented in practice. What rationalizes the puzzle? We first review the model of...

The results of this study for the 50 states imply that considerations of distance play an important role in the migration decision of blacks, with the distance variable being statistically significant at the five percent level or better in 80 percent of the cases. The racial composition variable...

This study examines determinants of gross in-migration by race (white and black) over the 1965-1970 time period. The ordinary least squares results reveal that both white migrants and black migrants have an aversion to cold weather and prefer to move shorter rather than longer distances. White...