Vertical separation versus vertical integration in a macroeconomic model with imperfect competition

Lai, Ching‐chong; Chin, Chi-Ting; Chang, Shu-hua

doi:10.1016/j.iref.2010.01.001

Cited by 4 publications

(2 citation statements)

References 23 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…5 To simplify the analysis, the scenario of the tax allowance is not discussed in this paper. 6 Lai, Chin, and Chang (2010) provide reasons for the assumption of an exclusive relationship between upstream and downstream firms. Empirical evidence provided by Heide, Dutta, and Bergen (1998) shows that exclusive dealing is a strategic decision for firms and plays an important role in industrial markets.…”

Section: Discussionmentioning

confidence: 99%

Industrial structure and economic performance: The role of productive public expenditure

Chang

2018

Review Development Economics

View full text Add to dashboard Cite

I consider productive government spending and preference for diversity in an imperfectly competitive macroeconomic framework, and analyze how differences in industrial structure affect economic growth and the welfare level. Two main findings emerge from the analysis. First, the optimal ratio of government spending is related to the extent of public expenditure externalities and preference for diversity. Second, the vertical separation regime leads to a higher economic growth rate and welfare level than the vertical integration regime, provided that the degree of monopoly power is relatively small.

show abstract

Section: Discussionmentioning

confidence: 99%

Industrial structure and economic performance: The role of productive public expenditure

Chang

2018

Review Development Economics

View full text Add to dashboard Cite

show abstract

“…The main purpose of these studies is to explore how the macroeconomic policies affect the relevant macro variables when the product market is imperfectly competitive. More recently, in departing from these existing studies, Lai et al (2010) focus on the issue from the perspective of the industrial structure. To be more specific, they set up an imperfectly competitive macroeconomic model that is able to deal with both vertical separation and vertical integration, and make an effort to examine the relative macroeconomic performance between these two industrial regimes.…”

Section: Introductionmentioning

confidence: 99%

A Macroeconomic Model of Imperfect Competition with Patent Licensing

Hsieh

Lai

Chen

2015

The B.E. Journal of Economic Analysis &Amp; Policy

Self Cite

View full text Add to dashboard Cite

This paper sets up an imperfectly competitive macroeconomic model that features the strategic interaction between the patent-holding firm and licensees, and uses it to analyze the relevant macro-variables under various licensing arrangements. Some main findings emerge from the analysis. First, the equilibrium aggregate output and aggregate consumption under fixed-fee and royalty licensing regimes are always greater than those under the no licensing regime. Moreover, the equilibrium aggregate output and consumption under the fixed-fee licensing regime are always greater than those under the royalty licensing regime. Second, with the higher (lower) technology level the patent holder prefers the fixed-fee (royalty) contract. Third, welfare could be improved through technology transfer, and the level of welfare under the fixed-fee licensing regime is higher than that under the royalty licensing regime. Lastly, this paper discusses some extensions of the baseline model.

show abstract

Optimal nonlinear income taxation with productive government expenditure

Lai¹,

Liao²

2012

International Review of Economics & Finance

View full text Add to dashboard Cite

Vertical separation versus vertical integration in a macroeconomic model with imperfect competition

Cited by 4 publications

References 23 publications

Industrial structure and economic performance: The role of productive public expenditure

Industrial structure and economic performance: The role of productive public expenditure

A Macroeconomic Model of Imperfect Competition with Patent Licensing

Optimal nonlinear income taxation with productive government expenditure

Contact Info

Product

Resources

About