In Lentz and Mortensen (2005), we formulate and estimate a market equilibrium model of endogenous growth through product innovation in the spirit of Klette and Kortum (2004). In this paper, we provide a quantitative solution to the social planner’s problem in the modeled environment. We find that the optimal growth rate is over three times larger than its value in market equilibrium and that th...

This paper discusses the implications of learning theory for the analysis of games with a move by Nature. One goal is to illuminate the issues that arise when modeling situations where players are learning about the distribution of Nature’s move as well as learning about the opponents’ strategies. A second goal is to argue that quite restrictive assumptions are necessary to justify the concept ...

This paper studies the macroeconomic effects of the transitory Value Added Tax (VAT) cut in the UK using a dynamic general equilibrium approach. The temporary VAT cut policy was announced on 24 November 2008, and was due to come into effect on 1 December 2008, with VAT reverting to its previous level as from 1 January 2010. We quantify the effects of that temporary fiscal stimulus policy on the...

ACKING-DENSITY variations in a powder compact often P result in nonuniform shrinkages andor cracking during subsequent drying and sintering. In case of dry-pressed compacts, the effect of consolidation conditions on density variations has been sufficiently detailed by theoretical models.' However, although recent trends have favored the use of colloidal consolidation methods in order to attain ...

In the early stages of the process of industry evolution, firms are financially constrained and might pay different wages to workers according to their expectations about the prospects for advancement offered by each firm’s job ladder. This paper argues that, nevertheless, if the output market is competitive, the positive predictions of the perfectly competitive model are still a good descripti...

the sorption isotherm and state diagram of sundried, golden and sultana raisins were constructed for investigation and comparison of the product stability. the isotherms were measured at 15, 25 and 35 °c using an isopiestic method and the data were modeled with gab model. glass transition temperatures of the products were measured by differential scanning calorimetery (dsc) and fitted to gordon...