We prove that in a closed economy without distortionary taxation, the welfare of a representative consumer is summarized to a first order by the current and expected future values of the Solow productivity residual in level and by the initial endowment of capital. The equivalence holds if the...

The transition to a green technology is central to environmental policy. During such a transition, technology and market structure often change simultaneously, as firms developing the new technology enter the market of incumbents supplying the old one. This leads to the questions how...

Recent studies have documented several trends in the U.S. market structure since the 1980s, such as the rise of large firms' markups and their profit margins. An important but not emphasized trend is the rise of the fixed operating costs of large firms. This trend is so salient that the...

Abstract: So trivial die Erkenntnis ist, dass Innovationen der Ursprung wirtschaftlicher und gesellschaftlicher Wandlungsprozesse sind, so sicher ist es auch, dass ausgerechnet die Bedingungen, die Innovationsentscheidungen zugrunde liegen und für ihren Erfolg maßgebend sind, bisher nur...

As a consequence of a technological change, the productivity of a factor may increase even when its supply increases. In this paper we analyze the determinants of this technological bias. We present a general equilibrium model, where a good is produced in the final sector using both a factor and...

In this paper, unlike the conventional wisdom, we demonstrate that the relationship between the size of the market and number of firms would be non-monotonic. While moderate rise in the size would force the local firms to exit and only the foreign firm rules, substantial rise in the size would...