This paper develops the theory of a U relation between seller concentration and R&D investment and integrates the new theory with the traditional expectation of an inverted-U relation. The paper illustrates the U relation, and the integrated U and inverted-U relations, for a single type of R&D...

We study the problem faced by the entrepreneur seeking outside support to turn an entrepreneurial idea into a successful innovation — specifically a successful technological innovation resulting from research and development. The paper develops and tests the hypothesis that as an...

Directly subsidizing bank deposits increases franchise value and promotes prudent lending. Subsidization can be made budget-neutral for the regulator by requiring banks to make upfront payments equal to the capitalized value of future subsidies they stand to receive. While compensating the...

This paper suggests two mechanisms by which a progressive distribution of tax burdens may promote economic efficiency. First, a progressive tax rate structure indexed to the median income may discourage rent seeking by powerful interest groups. Second, progressive taxation favors income streams...