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Modelling The Productivity Distribution Of Foreign And Domestic Firms In The UK
BNET
- 2006-06-09
The aim of this paper is to model the impact of R&D spending on the entire productivity distribution. This is relevant since a vast empirical literature has ascertained that firms are greatly heterogeneous with respect to productivity even in narrowly defined industries. Therefore it is important to investigate how R&D...
On The Welfare Effects Of Productivity Catch-Up By Laggard Firms
BNET
- 2006-04-27
The substantial within-industry variation in firm productivity typically observed in the data suggests that there is ample scope for productivity catch-up by laggard firms. We analyse the normative effects of such catch-up. In the short run, where firms' process technologies are fixed, catch-up can reduce social welfare if the initial...
Foreign Direct Investment Under R&D Competition
BNET
- 2004-10-15
We consider the preferences of a foreign firm and a welfare maximizing host country government for foreign direct investment through direct entry and acquisition in presence of innovation by the firms. We find that relatively superior technology is always used under acquisition. Though profits are higher under acquisition, consumers are...
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