IMPULLITTI, G., 2006b, “International Competition and Defensive R&D Subsi-
dies in Growing Economies”, mimeo, New York University
KLETTE, T.J., 1994, “Strategic Trade policy for Exporting Industries: More
General Results in the Oligopolistic Case”, Oxford Economic Papers, 46, 296-310
KOVAC, E. and K. ZIGIC, 2006, “International Competition in Vertically Differ-
entiated Markets with Innovation and Imitation: Impacts of Trade Policy ”, mimeo,
Intertic
KRUGMAN, P., 1980, “Scale Economies, Product Differentiation, and the Pattern
of Trade”, The American Economic Review, 70, 950-9
KRUGMAN, P. and M. OBSTFELD, 2000, International Economics. Theory and
Policy, Addison-Wesley Longman
MARKUSEN, J. and A. VENABLES, 1988, “Trade Policy with Increasing Returns
and Imperfect Competition”, Journal of International Economics, 24, 299-316
OBSTFELD, M. and K. ROGOFF, 1996, Foundations of International Macroeco-
nomics, MIT Press, Cambridge
SPENCER B. and J. BRANDER, 1983, “International R&D Rivalry and Industrial
Strategy” , Review of Economic Studies, L, 707-22
VENABLES, A., 1985, “Trade and Trade Policy with Impefect Competition: the
Case of Identical Products and Free Entry”, Journal of International Economics, 19,
1-19
WONG, K.-Y., 1995, International Trade in Goods and Factor Mobility, MIT
Press, Cambridge
ZIGIC, K., 2003, “Does ’Non-Committed’ Government Always Generate Lower
Social Welfare then its ’Committed’ Counter-Part’ ?”, CEPR dp N. 3946
Appendix A: Proof of Proposition 2
To verify the comparative statics of the system (4)-(5)-(7) with respect to s, let us
use the definitions where β =(n - 2)h(x) + h(z) and βH ≡ (n - 1)h(x) to rewrite
it in terms of the three unknown variables x, z and βH :
Π1 [x, h(z) - h(x)+βH, 0] = 0
Π1H[z,βH,s]=0 (19)
Π [x, h(z) - h(x)+βH, 0] = F
The second equation provides an implicit relationship z = z(βH, s) with dz/двн =
—ΠH>∕ΠH and ∂z∕∂s = — ΠH3∕ΠH > 0. Substituting this expression we obtain a
system of two equations in two unknowns, x and βH :
Π1 [x, h(z(βH, s)) — h(x) + βH , 0] = 0
Π [x, h(z(βH,s)) — h(x) + βH, 0] = F
Totally differentiating the system we have:
dx
dβH
∏ [1 + h0(z) ∂∂H] —П12 [1 + h0 (z) ∂∂h]
Π2h0(x) Π11 — Π12h0(x)
∏12h0(z) ∂S ds
Π2h0(z) ∂S ds
22
More intriguing information
1. A multistate demographic model for firms in the province of Gelderland2. THE DIGITAL DIVIDE: COMPUTER USE, BASIC SKILLS AND EMPLOYMENT
3. Behaviour-based Knowledge Systems: An Epigenetic Path from Behaviour to Knowledge
4. Foreign direct investment in the Indian telecommunications sector
5. The name is absent
6. Moi individuel et moi cosmique Dans la pensee de Romain Rolland
7. Should Local Public Employment Services be Merged with the Local Social Benefit Administrations?
8. Investment and Interest Rate Policy in the Open Economy
9. AGRICULTURAL TRADE LIBERALIZATION UNDER NAFTA: REPORTING ON THE REPORT CARD
10. Towards Teaching a Robot to Count Objects