We introduce a model of an infinitely-lived nonprofit organization facing donor crowd-out by government grants and credit constraints. The nonprofit chooses the optimal allocation of resources over time between providing service and fund-raising activities. We show that the response of...

We present a dynamic duopoly model of R&D with spillovers where industry concentration is endogenous. In our model, firms compete repeatedly in both the product market via Cournot competition and in imperfectly appropriable process R&D. The analysis highlights the effects of spillovers through...

When firms engaged in R&D are observably heterogenous (in size) and policymakers are able to condition policy on the observed heterogeneity, what is the optimal policy? This paper starts with a static two-stage duopoly model of R&D competition with uncertainty and finds it welfare enhancing to...

We extend the literature on knowledge spillovers between firms by studying a dynamic duopoly model of R&D. Our analysis highlights the previously ignored welfare effects of spillovers through dynamic changes in industry concentration. In addition, we find that the impact of imperfect...

Using industry level data for Japanese foreign direct investment (FDI) flows to five Asian countries, we investigate how the sensitivity of FDI to the exchange rate changes across different industry types and exchange rate indices. Key results are as follows: (i) aggregated FDI data reported at...

In a set of influential papers, Charles Jones (1995a, 1995b, 1999) argued that R&D based endogenous growth models are inconsistent with the data. He showed, in a very striking manner, that the scale effects prediction of early endogenous growth models (e.g. Romer, 1986 and 1990, Grossman and...

We study a dynamic duopoly model of R\&D to analyze the impact of imperfect appropriability on market structure and welfare. We pursue this analysis by extending the Markov-Perfect dynamic industry model proposed by Ericson and Pakes (EP) (1995), through the introduction of a non-proprietary...