This paper provides a unified approach to study the influence of uncertainty and spillovers on the direction of R&D policy when firms engage in international R&D competition. When the reward to the winner is exogenously given, it is shown that whether a government will tax or subsidize its firm...

The impact of international trade on a firm’s degree of specialization and income distribution is studied in a general equilibrium framework in which firms engage in oligopolistic competition. International trade increases a firm’s degree of specialization, but the number of goods a country...

The implications of globalisation on the size distribution of firms and returns to individuals are studied in a general equilibrium model in which individuals with different managerial skills choose to become managers or workers. The return to managerial skill as a convex function of managerial...